Short Answer

The society calculates and reports income that is not maintenance by following the provisions of the Gujarat Cooperative Societies Act, 1961 and the Gujarat Cooperative Societies Rules, 1965.

Detailed Explanation

Section 79 of the Gujarat Cooperative Societies Act, 1961 deals with the audit of the society's accounts. It mandates that every society shall maintain proper accounts and prepare an annual statement of accounts, including the income and expenditure account. This section ensures that all income, including non-maintenance income like service charges, is accurately recorded and reported in the society's financial statements. The audit of these accounts by a qualified auditor helps in verifying the accuracy of the reported income.

Rule 90 of the Gujarat Cooperative Societies Rules, 1965 further elaborates on the audit process. It specifies the format in which the annual statement of accounts is to be prepared and submitted to the Registrar. This rule ensures that the income, including any non-maintenance income, is reported in a standardized manner, facilitating transparency and accountability in the society's financial dealings.

In practice, when a society receives income other than maintenance charges, such as service charges, it records these amounts in the income and expenditure account. The society's accountant or authorized personnel are responsible for accurately documenting and reporting such income. During the annual audit, the auditor reviews these records to ensure compliance with the Act and Rules.

Real-world Scenarios

• Example 1: A cooperative housing society charges a nominal fee for providing additional services like clubhouse usage. This income is recorded separately from maintenance charges in the income and expenditure account as per Section 79 of the Act.

• Example 2: A cooperative society generates income from renting out common areas for events. This rental income is reported in the financial statements as non-maintenance income, following the guidelines of Rule 90 of the Rules.

Reference

• Section 79 of the Gujarat Cooperative Societies Act, 1961: Official PDF

• Rule 90 of the Gujarat Cooperative Societies Rules, 1965: Official PDF