TAX AUDIT OF CO-OPERATIVE SOCIETY

Dear Mr Agrawal,

Yes of course the co-operative society engaged in the business oflending money to its constituents would be required to get itsaccounts audited u/s 44AB if the interest receipts exceed Rs 40lacs. The fact that the whole of the profits of the co-op might bedeductible u/s 80P does not bear upon the applicability of Section44AB. Section 80P admits of the deduction from "profits and gains ofbusiness". Interest income being business receipts in the co-op'shands, it'd be called upon to appoint a CA u/s 44AB.I also reproduce the relevant para below from the ICAI's guidancenote on tax audit:[A co-operative society carrying on business may enjoy exemptionunder section 80P. Such institutions/associations of persons willhave to get their accounts audited and to furnish such audit reportfor purposes of section 44AB if their turnover in business exceedsRs. 40 lakhs]Thanks,CA Sanjeev Bedi--- In

ICAI_CIRC_MEERUT_CA@yahoogroups.com, "Anil Kumar Agrawal" wrote:>> Dear friends,Will any body let me know whether a co-operativesociety of bank engaged in the activity of financing to its membersand getting the interest ` require to get its a/c audited u/s 44AB.The objective of the society is not to make profit although it hasearned some profit.CA Anil Agrawal