Co-operative housing society accounting and audit
Accounting, compliance and audit for co-operative housing societies in Borivali, Gorai, Kandivali, Charkop, Dahisar and across Mumbai. Societies are run by volunteer committees, and clear accounts and a clean audit protect both the committee and the members.
Scope
What the work covers
A co-operative housing society in Maharashtra is governed by the Maharashtra Co-operative Societies Act, 1960, the rules under it and its registered bye-laws. The committee must keep proper books, get the accounts audited within four months of the close of the financial year by an auditor appointed by the general body, place the audit report before the annual general meeting, and submit an audit rectification report after acting on the auditor's remarks.
Alongside this, many societies have obligations under tax law: TDS on payments to contractors, GST once maintenance and other receipts cross the thresholds, and an income tax return every year. The work covers all of this, either as monthly accounting support, as the statutory audit, or both where the rules allow.
- Monthly society accounting: maintenance bills, receipts, member ledgers, outstanding dues and interest on arrears
- Sinking fund, repair and maintenance fund and other funds kept as the bye-laws require
- Annual accounts: income and expenditure account and balance sheet, ready for audit and the AGM
- Statutory audit of co-operative housing societies under the Maharashtra Co-operative Societies Act, 1960, where appointed by the general body
- Audit rectification report support and replies to the Registrar
- Internal audit of large societies and federations
- GST registration and returns for societies where maintenance and turnover cross the limits
- TDS on payments to contractors and professionals, and quarterly TDS statements
- Income tax returns for societies
- Accounting for redevelopment: corpus, rent, hardship compensation and the new building's funds
Approach
How the work is done
Review
The bye-laws, last audit report, rectification status and books are reviewed to understand where the society stands.
Organise
Member ledgers, billing heads and funds are set up correctly in the accounting software, with a monthly routine for bills, receipts and reconciliations.
Comply
TDS, GST and income tax filings are kept up to date, and year-end accounts are prepared in time for the audit and the AGM.
Audit and follow up
The audit is completed within the statutory time, and remarks are tracked until the rectification report is filed.
Getting started
Records to keep ready
- Registration certificate, bye-laws and list of members with flat details
- Previous year's audited accounts, audit report and rectification report
- Bank statements, fixed deposit receipts and investment details
- Maintenance bills, receipt books, and vouchers for expenses
- Minutes of committee and general body meetings
- Contracts for repairs, security and housekeeping, and any redevelopment agreement
Background
The practice is based in Borivali West and works with housing societies in the western suburbs, combining a chartered accountant's audit discipline with simple tools, such as automated maintenance billing and dues reports in Google Sheets, that committees can use themselves. See experience and expertise.
Fees
Fees depend on the scope of work, the volume and condition of records and the time required, and are confirmed in writing in an engagement letter before work begins.
Questions about co-operative housing society accounting and audit
Who appoints the auditor of a co-operative housing society?
The general body of the society appoints the statutory auditor at its annual general meeting, from the panel of auditors approved under the Maharashtra Co-operative Societies Act. The bye-laws also limit how many consecutive years the same auditor can be appointed.
By when must a housing society get its accounts audited?
The committee must get the accounts audited within four months of the close of the financial year. After the audit, the society must act on the auditor's remarks and submit an audit rectification report within the time set by the rules and bye-laws.
Does GST apply to housing society maintenance charges?
Per CBIC's clarification, GST at 18 per cent applies when a member's maintenance exceeds ₹7,500 per month and the society's aggregate turnover exceeds ₹20 lakh in the year. When both limits are crossed, GST is charged on the entire maintenance amount, excluding amounts collected for property tax and water charges.
Does a housing society need to file an income tax return?
Yes. A co-operative housing society is a separate taxpayer and should file a return every year. Member contributions are generally not taxable under the principle of mutuality, but interest, rent from mobile towers and hoardings, and other income from outsiders can be taxable, subject to deductions available to co-operative societies.
Can the same firm do the accounting and the audit?
No. An auditor cannot audit accounts that the same firm has prepared. A society can engage the firm for monthly accounting and appoint a different auditor, or appoint the firm as auditor and keep its own accountant.
Contact
Phone +91 95384 16161 or email ryan@vazassociates.in. Office opposite Maxus Mall, L.T. Road, Borivali West, Mumbai 400092. Work can also be handled remotely.