Society Registration

Advocate

Dear All,

A society resistered under Society Registration Act needs to open a Current account with bank or a saving bank account ?

 

regards

 

 
Reply   
 
Advocate / Legal Professional

 Dear Sir,

A society resistered under Society Registration Act need to open a Current account only with any bank.  Any Society/ firm can not  open the saving account.

 

regards

 
Reply   
 


ha21@rediffmail.com Mumbai : 9820174108

1.  A cooperative housing society (CHS) is a non-profit organisation (entity) and a non-commercial establishment.  A CHS is not doing any non-member business, hence its activities are not commercial in nature.

 

2.  Only a commercial establishment can open a  "Current A/c",   AND the current a/c, has no provision to pay Interest under the Banking Act or the RBI Act.

 

3.  Therefore the CHS can open account for its daily operations ONLY & ONLY in an "Savings Account" and not otherwise.  AND the savings account will receive mandatory Interest, as directed by RBI notifications.

 

4.  IF, it is a  "Coop CREDIT Society", (i.e. a non-CHS)  only then the society can open its account in a "Current a/c".   A Coop Credit Society, is a business enterprises and needs to be registered under Income Tax, Sales Tax, Excise, Service Tax,  Profession Tax, Shop & Establishment Act, as required.

 

5.  For its fixed deposits, a CHS has to maintain its FD's in a schedule Distrcit Coop Bank only.

 

Keep Smiling .... Hemant Agarwal

 
Reply   
 
Lawyer (Alld. H.C) Lucknow Bench

Hi all Mr. Hemant's reply is just. I also have a soceity running. Its the savings. Now If yoyu have a PAN  card, which is mandatory, u can also invest in the mutual funds.

Regards

 
Reply   
 
Advocate

dear Mr Hemant,\

i think ur talking about Cooperative Housing Society. But I am Talking about normal Welfare Society under Society registration Act .....  as an NGO...

Kindly Advise

 

 
Reply   
 

 Dear friend, there is a differene between cooperative society and a society registered under the societies registration act. Society regisered under the societies registration act is no profit oriented organisation. it is also having duty to submit incometax accounts and can obtain exemption under sections 12 and 13 of I.T Act. so the society can open a current account in any nationalised bank. there is no prohibition to a society to open a savings account also because for regular transactions savings account can also be opened.

Ramana Murthy. G.L.V

 
Reply   
 

Can a Soceity open a current account with any bank????

 
Reply   
 
N/A

https://www.rbi.org.in/scriptts/NotificationUser.aspx?Id=9839&Mode=0 section 18.2 makes it clear that primary cooperative banks cannot open savings accounts for housing cooperative societies but can open them for societies registered under the Societies Registration Act, 1860, or any other corresponding law in force in a State or a Union Territory.

 
Reply   
 

LEAVE A REPLY


    

Your are not logged in . Please login to post replies

Click here to Login / Register  



 

Search Forum:








×

  LAWyersclubindia Menu

web analytics