Short Answer

Yes, as per the Gujarat Cooperative Societies Act, 1961 and Rules, 1965, if cash transactions exceed a certain threshold, the society must report them to the concerned authorities.

Detailed Explanation

Section 91 of the Gujarat Cooperative Societies Act, 1961 empowers the Registrar to direct the society to maintain proper accounts and submit reports. This includes reporting cash transactions exceeding a specified limit. Failure to comply can lead to penalties or legal actions against the society. Rule 97 of the Gujarat Cooperative Societies Rules, 1965 further elaborates on the reporting requirements for cash transactions.

In practice, societies are required to maintain accurate records of all financial transactions, including cash inflows and outflows. If the cash transactions cross the prescribed threshold, the society must inform the appropriate authorities, such as the tax department, to ensure transparency and compliance with regulations. This helps in preventing money laundering, tax evasion, and other financial irregularities.

Real-world Scenarios

• Example 1: A cooperative housing society receives a large cash payment for maintenance fees from a member, exceeding the threshold set by the Act. The society must report this transaction to the tax authorities.

• Example 2: A cooperative credit society conducts a cash deposit drive where members contribute funds exceeding the limit. The society needs to inform the Registrar about these transactions.

Step-by-step process:

• Maintain detailed records of all cash transactions.

• Regularly monitor the cash inflows and outflows.

• If any transaction exceeds the specified threshold, prepare a report.

• Submit the report to the relevant authorities as per the guidelines.

References

• Section 91 of the Gujarat Cooperative Societies Act, 1961

• Rule 97 of the Gujarat Cooperative Societies Rules, 1965