what are consumer's cooperative society?

Question

relating to india

Answer 1

First what is a consumer's cooperative society:
A consumers' cooperative is a business owned by its customers for their mutual gain. It is a form of free enterprise that is oriented toward service rather than pecuniary profit. The customers or consumers of the goods and/or services the business provides are also the individuals who have provided the capital required to launch or purchase that enterprise.

(Although a consumers' co-op is sometimes called a retail cooperative, it should be distinguished from a retailers' cooperative, whose members are the stores or chains themselves, rather than the individual consumers.)

A consumers' cooperative may comprise supermarkets, convenience stores, and other businesses owned by independently-owned, and run Co-operative societies, which benefit from joint co-ordination and co-operation in managing their businesses. As mutually-owned businesses, each member of a society has a shareholding equal to the sum they paid in when they joined.

Consumers Co-operatives may, in turn, form Co-operative Federations. These may come in the form of co-operative wholesale societies, through which Consumers' Co-operatives collectively purchase goods at wholesale prices and, in some cases, own factories. Alternatively, they may be members of Co-operative Unions.
ABOUT INDIA:
Due to the misuse and abuse of agency system for rural credit by landlords, money lenders, zamindars during British Rule in India , there were great consternation and revolt by farmers in some parts of India . This led to search for some reform models. The first Cooperative Society Act of 1904 was enacted to enable formation of "agricultural credit cooperatives". The 1904 Cooperative Societies Act was later repealed by 1912 Cooperative Societies Act which provided for formation of Cooperative societies other than credit. In 1919 there was Administrative Reforms and Cooperatives were made a provincial subject making each province responsible for Cooperative movement and development. In 1942, the Multi-Unit Cooperative Societies Act, 1942 was enacted by the Government of India with an object to cover societies whose operations are extended to more than one state. Later, in 1984, the Government of India enacted a comprehensive Act known as Multi State Cooperative Societies Act, 1984, which also repealed the Act of 1942. On the recommendation of the Mirdha Committee and the "Model Cooperative Societies Act" the Government of India enacted the Multi State Cooperative Societies Act, 2002 which provided for democratic and autonomous working of the Cooperatives. The Multi State Cooperative Societies Act, 2002 came into force with effect from August 19, 2002 .
Also:
India

In India, the beginning of cooperatives is linked to the Nidhi's in the Province of Madras, in the second half of 19th century. These were quite similar to Raiffesen credit cooperatives. Other types of cooperatives, like consumer cooperatives, were also organized on the basis of the Rochdale model, in the last decades of the century. Seeing these trends and considering the problems of rural agricultural economy, the First Cooperative Law of India was enacted by the British in 1904, covering the undivided India (including Bangladesh, Pakistan, and Burma). The law covered only credit cooperatives and was repealed by a new law to cover various types of cooperatives in 1912. The 1912 cooperative law focused on provisional issues and provinces were given powers to enact their own cooperative laws. Henceforth, all provinces/states introduced own cooperative laws. To cover the cooperatives that have members in more than one State, the Multi-unit Cooperative Societies Act was introduced by the Government of India in 1942. This Act was an enabling Act and was replaced by a comprehensive enactment i.e. Multi State Cooperative Societies Act 1984 and is presently operative.
There are provisions in the Income Tax System Of India:
Deduction in respect of income of co-operative societies.


(1) Where, in the case of an assessee being a co-operative society, the gross total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in sub-section (2), in computing the total income of the assessee.

(2) The sums referred to in sub-section (1) shall be the following, namely:-

(a) in the case of a co-operative society engaged in-

(i) carrying on the business of banking or providing credit facilities to its members, or

(ii) a cottage industry, or

(iii) the marketing of the agricultural produce grown by its members, or

(iv) the purchase of agricultural implements, seeds, live-stock or other articles intended for agricultural for the purpose of supplying them to its members, or

(v) the processing, without the aid of power, of the agricultural produce of its members,or

(vi) the collective disposal of the labour of its members, or

(vii) fishing or allied activities, that is to say, the catching, curing, processing, preserving, storing or marketing of fish or the purchase of materials and equipment in connection therewith for the purpose of supplying them to its members,

the whole of the amount of profits and gains of business attributable to any one or more of such activities:

Provided that in the case of a co-operative society falling under sub-clause (vi) or sub-clause (vii), the rules and bye-laws of the society restrict the voting rights to the following classes of its members, namely:-

(1) the individuals who contribute their labour or, as the case may be, carry on the fishing or allied activities;

(2) the co-operative credit societies which provide financial assistance to the society;

(3) the State Government;

(b) in the case of a co-operative society, being a primary society engaged in supplying milk, oilseeds, fruits or vegetables raised or grown by its members to-

(i) a federal co-operative society, being a society engaged in the business of supplying milk, oilseeds, fruits, or vegetables, as the case may be; or

(ii) the Government or a local authority; or

(iii) a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956), or a corporation established by or under a Central, State or Provincial Act (being a company or corporation engaged in supplying milk, oilseeds, fruits or vegetables, as the case may be, to the public),

the whole of the amount of profits and gains of such business;

(c) in the case of a co-operative society engaged in activities other than those specified in clause (a) or clause (b) (either independently of, or in addition to, all or any of the activities so specified), so much of its profits and gains attributable to such activitites as does not exceed,-

(i) where such co-operative society is a consumers' co-operative society, one hundred thousand rupees; and

(ii) in any other case, fifty thousand rupees .

Explanation.- In this clause, "consumers' co-operative society" means a society for the benefit of the consumers;

(d) in respect of any income by way of interest of dividends derived by the co-operative society from its investments with any other co-operative society, the whole of such income;

(e) in respect of any income derived by the co-operative society from the letting of godowns or warehouses for storage, processing or facilitating the marketing of commodities, the whole of such income;

(f) in the case of a co-operative society, not being a housing society or an urban consumers' society or a society carrying on transport business or a society engaged in the performance of any manufacturing operations with the aid of power, where the gross total income does not exceed twenty thousand rupees, the amount of any income by way of interest on securities or any income from house property chargeable under section 22.

Explanation.-For the purposes of this section, an " urban consumers' co-operative society " means a society for the benefit of the consumers within the limits of a municipal corporation, municipality, municipal committee, notified area committee, town area or cantonment.

(3) In a case where the assessee is entitled also to the deduction under section 80HH or section 80HHA or section 80HHB or section 80HHC or section 80HHD or section 80-I or section 80-IA or section 80J, the deduction under sub-section (1) of this section, in relation to the sums specified in clause (a) or clause (b) or clause (c) of sub-section (2), shall be allowed with reference to the income, if any, as referred to in those clauses included in the gross total income as reduced by the deductions under section 80HH, section 80HHA,section 80HHB, section 80HHC, section 80HHD, section 80-I, section 80-IA, section 80J and section 80JJ .

Answer 2

Consumer Cooperative

Answer 3

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A consumers' cooperative is a cooperative business owned by its customers for their mutual benefit. It is a form of free enterprise that is oriented toward service rather than profit. The customers or consumers of the goods and/or services the business provides are often also the individuals who have provided the capital required to launch or purchase that enterprise. There are many types of consumers' cooperative. There are health care, insurance, and housing cooperatives as well as credit unions, agricultural and utility cooperatives. The major difference between consumers' cooperatives and other forms of business is that the purpose of a consumers' cooperative association is to provide quality goods and services at the lowest cost to the consumer/owners rather than to sell goods and services at the highest price above cost that the consumer is willing to pay. In practice consumers' cooperatives price goods and services at competitive market rates. The difference is that where a for-profit enterprise will treat the difference between cost (including labor, etc.) and selling price as financial gain for investors, the consumer owned enterprise may retain this to accumulate capital in common ownership, distribute it to meet the consumer's social objectives, or refund this sum to the consumer/owner as an over-payment.

Answer 4

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what are consumer's cooperative society?
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Answer 5

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