Short Answer

Property tax included in maintenance is shown separately in the accounts.

Detailed Explanation

Rule 84 of the Gujarat Cooperative Societies Rules, 1965 states that the society shall maintain a register of receipts and payments, showing separately the amounts received and expended under different heads, including property tax. This means that property tax included in maintenance charges should be recorded distinctly in the society's accounts to ensure transparency and proper financial management.

In practice, when a cooperative society collects maintenance charges from its members, it should clearly specify the portion attributable to property tax. This amount should be segregated in the accounts under the appropriate head to reflect the actual expenses incurred by the society towards property tax payments. By maintaining a separate record for property tax, the society can accurately track and report these expenses to its members.

Real-world Scenarios

• Scenario 1: XYZ Cooperative Housing Society collects monthly maintenance charges of INR 500 per member. Out of this, INR 50 is earmarked for property tax. The society records this amount separately in its accounts under the property tax head for each member.

• Scenario 2: ABC Cooperative Society faces a property tax increase from the local municipality. To cover this additional expense, the society decides to revise the maintenance charges and clearly communicates the revised amount allocated to property tax in the accounts.

Reference

• Rule 84 of the Gujarat Cooperative Societies Rules, 1965

• https://cooperation.gujarat.gov.in/writereaddata/Portal/Images/pdf/Co_Op_Societies_Rules1965.pdf