The proposed provisions of Direct Tax Code 2012 do not seem to be a welcome affair for cooperative societies in the state. The representatives of Karnataka State Credit Co-operative Association who are opposing certain provisions and clauses of the Bill, submitted a memorandum to Special Representative of the State Government in New Delhi V Dhananjay Kumar who would in turn take it forward to the State as well as the Union governments seeking suitable amendments to the bill.
Addressing a gathering at the inauguration of a workshop organised by the Karnataka State Credit Cooperative Association, Dhananjay Kumar said, The Cooperative Associations cannot be compared with multinational companies and banks, hence they should be exempted from income tax which has been stated as 33 percent on its earnings.
He stated, The Standing Committee is yet to discuss the proposed Direct Tax Code 2012 which will be effective from April 1, 2012. The Association can put forward a memorandum for its amendment.
He also assured the Association that he would discuss the issue with the Union Government, once it comes from the State Government.
Speaking on the occasion, General Secretary of the Karnataka State Credit Cooperative Association Gurunath J said, The taxes need to be levied depending on the earnings of the cooperative associations. We have also launched a nationwide agitation against the Direct Tax Code 2012.
Besides the abolition of taxes, we are demanding? removal of proposed amendments that would curtail the sovereignty of coop societies. In addition, we are demanding the establishment of Cooperative University and Sahakara Bhavan in each district to benefit cooperative societies, he added.