Friday 21 January 2011
KERALA COOPERATIVE AUDIT MANUEL VOLUM I PART IV CHAPTER III
ASSESSMENT AND LEVY OF AUDIT FEES
1. Procedure for levy of audit fees - Statutory provision :- Audit of Co-operative Societies is the statutory responsibility vested on the Registrar. In order to carry out this responsibility effectively, the Registrar has to maintain sufficient number of staff, indifferent categories, the cost of which is met from out of Public revenue.
Every Co-operative Society whose accounts are audited by the Department, is required to pay to the Government audit fees according to the scale fixed under the provisions of the Co-operative Societies Act and Rules. The audit fees payable by a Society is calculated soon after the audit is over, and the amount payable is to be specified in the audit certificate. The basis of levy of audit fee is different for different types of societies.
Rule 65 of the Kerala Co-operative Societies Rules 1969 governs the payment of audit fees for the different types of societies, which are as follows:
(1) Every Co-operative Society shall pay to Government within one month of receipt of the annual audit certificate an audit fee calculated on the working capital as on the last day of the co-operative year to which the audit relates or on the total sales during the year or on the gross income during the year, as the case may be, as shown below.
(i) Credit Societies (excepting primary Land Mortgage Banks Housing Societies and House Mortgage (Banks) on the working capital.
(ii) Primary Land Mortgage Banks, House Mortgage Banks, Housing Societies :- on the aggregate of loans issued and that recovered during the year under audit.
(iii) Societies having credit and non credit activities :- On working capital or on sale proceeds of goods whichever is higher.
(iv) Societies dealing in goods (excepting Coir Societies) :- On sale proceeds.
(v) Coir Co-operative Societies :- On proceeds of Coir sold as owner as well as on the commission realised on goods sold as agents.
(vi) Transport Societies :- On hire charges collected and sale proceeds of articles.
(vii) Other Societies :- On gross income.
Audit fees will be calculated at the rate of 30 Paise for every one hundred Rupees or part thereof on the working capital, the value of sales or gross income, as the case may be up to Rs. 5 lakhs and thereafter at the rate of 20 Paise for every next one hundred rupees or part thereof. The maximum audit fees payable by a Society should not exceed Rs. 3000
2. Exemption from payment of audit fees :- The following classes of Societies are exempted from the payment of audit fees.
(a) All Co-operative Societies of which all or a majority of the members are Harijans.
(b) All farming societies
(c) All social welfare societies.
(d) Any society or group of societies which has its accounts audited at its own expense by an officer of the Co-operative Department, as per provisions contained in Sub rule (2) of Rule 65 of the Kerala Co-operative Societies Rules or under an agreement approved by the Registrar to audit the accounts of such Society.
(e) Any weavers’ Society or coir co-operative Society, or housing society or primary society formed for the benefit of Fishermen until it has completed the sixth co-operative year after commencing business.
(f) Any Society for the first year of audit, irrespective of the date of commencement of business.
(g) Any credit society the working capital of which does not exceed Rs. 2,000 and any other society the sales or gross income of which does not exceed Rs. 10,000.
Audit fees payable by a Society is to be remitted into the Government Treasuries under the proper head and the receipted chalan issued by the Treasury Officer, should be sent to the Assistant Registrar (General) Deputy Registrar, concerned, who will watch the proper collection of audit fees.