Short Answer

The handling of property tax or municipal water tax in a cooperative society typically depends on the bylaws of the society. In most cases, these taxes are paid by individual members, but the society may also collect them as part of maintenance charges.

Detailed Explanation

Section 86 of the Gujarat Cooperative Societies Act, 1961 empowers cooperative societies to levy and collect charges, fees, and other amounts from their members for various purposes, including maintenance of common areas and utilities. This section allows the society to include property tax or municipal water tax as part of the maintenance charges payable by the members. The society can decide through its bylaws whether these taxes will be paid directly by individual members to the respective authorities or if they will be collected by the society and paid collectively.

Rule 56 of the Gujarat Cooperative Societies Rules, 1965 further elaborates on the powers of the society in collecting charges from its members. It states that the society can make provisions in its bylaws regarding the collection of various charges, including property tax and municipal water tax. The rule also specifies that the society must maintain proper accounts of all such collections and expenditures.

In practice, the society may choose to collect property tax and municipal water tax from individual members along with the maintenance charges. This consolidated approach simplifies the process for members and ensures timely payment of these taxes. However, the specific handling of these taxes may vary from one cooperative society to another based on their bylaws and internal regulations.

Examples:

• Scenario 1: ABC Cooperative Housing Society includes property tax and municipal water tax in the monthly maintenance bill issued to its members. The members are required to pay the total amount to the society, which then disburses the respective taxes to the authorities.

• Scenario 2: XYZ Cooperative Society mandates that each member is responsible for paying their property tax and water tax directly to the municipal corporation. The society only collects maintenance charges for common facilities.

Reference

• Gujarat Cooperative Societies Act, 1961: Section 86

• Gujarat Cooperative Societies Rules, 1965: Rule 56