Pics: Hemanath Padubidri
Daijiworld Media Network – Udupi (SM)

Udupi, Dec 7: Karnataka State Cooperative Society, Bangalore, Udupi District Cooperative Union, Karnataka State Sowhardha Samyukhtha Cooperative Nigam, Bangalore, South Canara Milk Producers' Cooperative Society, all unions and milk producers' cooperative societies of the district together organized day-long bundh to protest against the income and service tax levied on the cooperative societies on Friday December 7.

A memorandum was forwarded through MT Reju DC to the state and central government.

The issue began with a misunderstanding which took place when the income tax authority appealed the cooperative societies to be considered as cooperative bank and urged same taxes to be imposed on all cooperative societies.

“As per the rule column 80 P (2) (a) (i), cooperative societies will have 100% tax free provision, but forcefully all the cooperative societies are brought under 80 P (4) which states that 1/3 of the profit will be payable as tax”, said Gopi Krishna, member of Udupi districts corporative union.

“If we move to the court for justice, it will take more than three to four years for the hearing. By then the amount of tax will rise to an incredible rate. As the service tax, 12% interest is levied for all services.12% service tax is meant for commercial concerns, which is profit oriented but the cooperative societies are social oriented institutes”, he said.  He also raised questions for imposing 12% interest. On July 1, 2012 negative list consulter was introduced and cooperative societies were included among them, according to which the service providers have to pay nothing while the receiver has to pay, he added.

Satheesh Chandra from Karnataka state cooperative society said that Karnataka State Cooperative Society is based on the Indian culture which believes in staying together as a union. “We can say that world economy is going back and Indian economy is moving forward sturdily. Three to four years of pending tax amount, which comes up to Rs 15 to Rs 20 lac for many cooperative societies is not affordable”, he said.

“Cooperative society is not involved in second business. We work transparently. More employment opportunity is provided to women. This is just the initial step and if we don’t get response from the government, we will go further”, he added.

A vehicle rally was organized from Town hall to DC office and memorandum was submitted.