Multi-State Cooperative Society

A multi-state Cooperative Society means a society registered or deemed to be registered under the Multi-State Cooperative Societies Act, 2002 and includes a national Cooperative society or a Federal Cooperative.
Steps involved for forming a Cooperative Society under a state act:

(i) Prescribed application duly filled in shall be made to the Registrar of Cooperative societies;
(ii) the application shall be accompanied by four copies of the proposed Bye-laws of the society;
(iii) Where all the applicants are individuals, the number of applicants shall not be less than ten;
iv) the application shall be signed by every one of such applicants if the applicants are individuals;
v) if the applicant is a society, by a member duly authorized by such society;

To form a Multi-State Cooperative society
(i) An application for registration of a Multi-State Cooperative society shall be made in the prescribed form;
(ii) the application shall be signed by;
(a) In the case of a multi-state Cooperative society of which all the members are individuals, by at least fifty persons from each of the states concerned.
(b) In case the members are Cooperative Societies, by duly authorised representatives on behalf of at least five such societies as are not registered in the same state;
(c) In case the members are other Multi-State Cooperative Societies and other Cooperative Societies, by duly authorised representatives of each of such societies;
(d) If the members are cooperative societies or multi-state Cooperative societies and individuals, by at least (i) fifty persons, being individuals from each of the two states or more and; (ii) one Cooperative society each from two states or more or one Multi-state Cooperative society.
(e) The application shall be accompanied by four copies of the proposed Bye-laws.
(f) (i) Name of the proposed multi-state cooperative society;
(ii) Head Quarters and address to be registered;
(iii) Area of operation;
(iv) Main objectives
(v) a certificate from the Bank
(vi) Stating credit balance there in favour of the proposed Multi-State Cooperative Society. you.
Laws regulating Cooperative Societies in India are:
(a) State Cooperative Societies Acts of individual states
(b) Multi-State Cooperative Societies Act, 2002 for the multi-state Cooperative societies with Area of operation in more than one State.

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A Cooperative Society means, a society registered or deemed to be registered under any law relating to cooperative societies for the time being in force in any State or under the Central act.

Cooperative societies may be governed by the respective State cooperative societies Act or by the Multi-State Cooperative Societies Act, 2002. The Societies whose main objective is to serve the interests of its members in a particular State, are governed by the Cooperative Societies Act of that particular State. While, a Society whose main objectives is to serve the interests of its members in more than one State, are governed by the Multi-State Cooperative Societies Act, 2002 .

According to the Cooperative Societies Act of each State, a cooperative society registered within any State under the law of that State is not allowed to operate in other States without the permission of the Government or Registrar of Cooperative Societies of that State. In case of multi-State cooperative society, it can operate in more than one State as a matter of right, under the Act and no permission of any State is required to do its business. However, for Registration of Multi State of Multi State Co operative Society, NOC is required from the registrar of Co operative of the respective States.
Provisions for Taxation of a Cooperative Society

A Cooperative Society is a taxable entity under the Income Tax Act ,1961 . A Cooperative Society under the Act is to be treated as an Association of Persons (AOP), which is included in the definition of ' person ' under the Income Tax Act,1961. Even though, for taxation purposes, the status of a cooperative society is to be taken as an Association of Persons, the section 67A and section 86 of the Act have been excluded from application to the members of society.
A Cooperative Society is taxed at rates, which are different from those applicable to an AOP. Under the annual Finance Act , though individuals, Hindu undivided family, AOP or body of individuals , whether incorporated or not , or every artificial juridical person referred to in the Income Tax Act, are chargeable at rates prescribed in paragraph A, of the Finance act. A Cooperative society is chargeable to tax as per rates prescribed under paragraph B of Part1 of the first schedule to the annual Finance Act .

The amount of income tax computed in accordance with the provisions of paragraph B , shall in the case of every cooperative society, be increased by a surcharge . The rate of surcharge is prescribed in each of the Finance Acts .
The Cooperative Societies are entitled to several concessions, in the computation of their taxable income. Besides, they also enjoy the benefit of concessional rate of tax on their chargeable income under the annual Finance Act .

As per Wealth Tax Act [Section 3(1)], only individuals, Hindu undivided families and companies are liable to wealth tax. Thus, no wealth tax is charged in the case of cooperative society.