State opposes direct taxes on profits of co-operative societies
November, 09th 2012
State level co-operative week will begin here on 14 November and the first day the experts in the field will discuss the legislators related to co-operative sector and the direct tax bill introduced by the union government.
Disclosing the celebrations, Karnataka state co-operative federation chairman G T Devegowda said the co-operative week is celebrated every year to commemorate Nehru's contribution to the co-operative field and it's growth in the country. " We will discuss on one issue related to co-operative sector on each day of the week and pass resolutions" he claimed, adding that these resolutions and recommendations will be sent to the government for the implementing.
Referring to 97 thconstitution amendment being brought by the union government to make laws uniform for co-operative sector in all the states, Devegowda said the amendment will benefit the co-operative institutions and the federation which has deliberated in detail on the amendment has sent some suggestions to the state government which in turn has agreed to incorporate them in the law and place before the assembly in the forthcoming session .
However the state co-operative sector is strongly demanding the centre to withdraw the 33 % direct tax levied on the co-operative institutions profits, he pointed out and said this will spell disaster for the co-operative institutes and banks which pass on the profit to the members without any commercial motive in the business. " This direct tax will squeeze the co-operative societies of the funds which pass on the profits directly to the farmers and members" he said.