AUDIT FEES CIRCULAR

GOVT. OF PUNJAB

DEPARTMENT OF COOPERATION

(COOPERATION I BRANCH )

To

The Registrar,

Cooperative Societies, Punjab,

Chandigarh.

Memo No. 70/17/90/C-I(5)/

Chandigarh dated the

Subject :- Revision of Audit Fee charged by the Audit Department in lieu of rendering service to the Cooperative Institutions in the State w.e.f. 1.4.2006

Reference : Your letter No. RCS/A.R. Audit/Inspector Audit/295 A dated 13.12.2005.

Under Rule 50 of the Punjab Cooperative Societies, Rules, 1963. The Governor of Punjab is pleased to accord approval to the revision of audit fee sales with effect from 1.4.2006 in respect of the following types of Cooperative Societies as per revised scales indicated against each society :-

S.No.

Type of Cooperative Society

Revised scales of Audit fee

1

Markfed

10% of the net profit with Maximum of Rs. 15 Lacs ( Rs. Fifteen Lacs ) and the Minimum of Rs. 10 Lacs ( Rs. Ten Lacs Only )

2.

Milkfed

10% of the net profit with Maximum of Rs. 50,000/- ( Rs. Fifty Thousand ) and the Minimum of Rs. 20,000/- ( Rs. Twenty Thousand Only )

3

Spinfed

No need to review since under liquidation.

4

Weavco

10% of the net profit with Maximum of Rs. 35,000/- ( Rs. Thirty Five Thousand Only ) and the Minimum of Rs. 10,000/- ( Rs. Ten Thousand Only) as enhancement is not justified as the work is going to reduce due to closing of production/processing units and lose making show rooms.

5

Sugarfed

10% of the net profit with Maximum of Rs. 35,000/- ( Rs. Fifty Thousand ) and the Minimum of Rs. 20,000/- Lacs ( Rs. Twenty Thousand Only )

6

Housefed

10% of the net profit with Maximum of Rs. 1.0 Lacs ( Rs. One Lacs Only ) and the Minimum of Rs. 20,000/- Lacs ( Rs. Twenty Thousand Only )

7

Constofed

Merged with Markfed thus Audit Fee not required.

8

Puncofed

Flat rate of Rs. 10,000/- ( Rs. Ten Thousand Only )

9

Labourfed

Flat rate of Rs. 7500/- ( Rs. Seven Thousand five Hundred Only ).

10

Fruitfed

10% of the net profit with Minimum of Rs. 2500/- ( Rs. Two Thousand Five Hundred Only ) and the Minimum of Rs. 25,000/- ( Rs. Twenty Five Thousand Only )

11

The Punjab State Coop. Agri. Development Bank Ltd.,

7.5% of the net profit with a maximum of Rs. 8.00 Lacs ( Rs. Eight Lacs Only ) and minimum of Rs. 1.5 Lacs ( Rs. One Lac Fifty Thousand Only ).

12

The Punjab State Coop. Bank Ltd.,

7.5% of the net profit with a maximum of Rs. 10 Lacs ( Rs. Ten Lacs Only ) and Minimum of Rs. 2 Lacs ( Rs. Two Lacs Only )

13

Poultry Federation

Flat rate of Rs. 2000/- ( Rs. Two Thousand Only )

14

Industrial

-Do-

15

Central Coop. Bank

7.5% of the net profit with a Maximum of Rs. 6.00 Lacs ( Rs. Six Lacs Only ) and Minimum of Rs. 1.5 Lacs ( Rs. One Lac Fifty Thousand Only )

16

Central Coop. Stores and primary Stores and Canteens.

7.5% of the net profit with a Maximum of Rs. 20,000/- ( Rs. Twenty Thousand Only ) and minimum of Rs. 1,000/- ( Rs. One Thousand Only )

17

Urban Banks with Concurrent Audit

7.5% of the net profit with a Maximum of Rs. 1 Lac ( One Lac Only ) and Minimum of Rs. 35,000/- ( Rs. Thirty Five Thousand Only )

18

Urban Banks under Annual Audit.

7.5% of the net profit with a maximum of Rs. 10,000/- ( Rs. Ten Thousand Only ) and Minimum of Rs. 5,000/- ( Rs. Five Thousand

Only )

19

District Cooperative Union

7.5% of the net profit with a maximum of Rs. 10,000/- ( Rs. Ten Thousand Only ) and Minimum of Rs. 2,000/- ( Rs. Two Thousand Only )

20

District Cooperative Labour & Const. Union

7.5% of the net profit with a maximum of Rs. 15,000/- ( Rs. Fifteen Thousand Only ) and Minimum of Rs 7,500/- ( Rs. Seven Thousand Five Hundred Only )

21

District Cooperative Industrial Union

7.5% of the net profit with a maximum of Rs. 5,000/- ( Rs. Five Thousand Only ) and Minimum of Rs. 250/- ( Rs. Two Hundred Fifty Only )

22

District Cooperative Wholesale Socs.

Merged with Markfed thus Audit Fees not required.

23

District Cooperative Milk Union ( Without Milk Plant )

Flat rate of Rs. 7500/- ( Rs. Seven Thousand Five Hundred Only ).

24

District Cooperative Milk Union ( With Milk Plant )

7.5% of the net profit with a maximum of Rs. 50,000/- ( Rs. Fifty Thousand Only ) and Minimum of Rs. 10,000/- ( Rs. Ten Thousand Only )

25

Under Concurrent Audit Cooperative Sugar Mills

7.5% of the net profit with a maximum of Rs. 1.25 Lacs ( Rs. One Lac Twenty Five Thousand Only) and Minimum of Rs. 25,000/- ( Rs. Twenty Five Thousand Only )

26

Under Annual Audit Cooperative Sugar Mills

7.5% of the net profit with a maximum of Rs. 1.25 Lacs ( Rs. One Lac Twenty Five Thousand Only) and Minimum of Rs. 15,000/- ( Rs. Fifteen Thousand Only )

27

Registered but without License

Rs. 2,000/- ( Rs. Two Thousand Only ) lump sum only.

28

Under Erection

Rs. 5,000/- ( Rs. Five Thousand ) lump sum

only

29

Cooperative Spinning Mills

Same in the case of Sugar Mills

30

Coop. Cotton Based Spinning Mills

7.5% of the net profit with a maximum of Rs. 1.5 Lacs ( Rs. One Lac Fifty Thousand Only) and Minimum of Rs. 10,000/- ( Rs. Ten Thousand Only )

31

PADBs

Under Concurrent Audit

7.5% of the net profit with a maximum of Rs. 1.00 Lacs ( Rs. One Lac Only) and Minimum of Rs. 25,000/- ( Rs. Twenty Five Thousand Only )

32

Under Annual Audit

7.5% of the net profit with a maximum of Rs. 0.75 Lacs ( Rs. Seventy Five Thousand Only) and Minimum of Rs. 10,000/- ( Rs. Ten Thousand Only)

33

Marketing Societies

Under Concurrent Audit

7.5% of the net profit with a maximum of Rs. 0.50 Lacs ( Rs. Fifty Thousand Only) and Minimum of Rs. 10,000/- ( Rs. Ten Thousand Only )

34

Under Annual Audit

7.5% of the net profit with a maximum of Rs. 20,000/- ( Rs. Twenty Thousand Only) and Minimum of Rs. 5,000/- ( Rs. Five Thousand Only)

35

Sugar Cane Societies

Flat Rate of Rs. 5,000/- ( Rs. Five Thousand Only)

36

Cold Storage

Flat Rate of Rs 2,000/- ( Rs. Two Thousand Only )

37

Women Industrial Societies

1% of the net profit with a maximum of Rs. 500/- ( Rs. Five Hundred Only ) and Minimum of Rs. 100/- ( Rs. One Hundred Only ).

38

Cinema Societies

Fat rate of Rs. 10,000/- ( Rs. Ten Thousand Only) with Cinema House and Rs. 2,000/- ( Rs.

Two Thousand Only ) without Cinema House.

39

Agricultural service societies and principal societies

7.5% of the net profit with a maximum of Rs. 10,000/- Lacs ( Rs. Ten Thousand Only) and Minimum of Rs. 2,000/- ( Rs. Two Thousand Only)

40

Other Agricultural Credit Societies

7.5% of the net profit with a maximum of Rs. 1,000/- Lacs ( Rs. One Thousand Only) and Minimum of Rs. 500/- ( Rs. Five Hundred Only )

41

Non Agri. Credit Societies ( Others .

-Do-

42

Thrift and Credit Societies

-Do-

43

Thrift and Saving Societies and Women Societies

7.5% of the net profit with a maximum of Rs. 1.25 Lacs ( Rs. One Lac Twenty Five Thousand Only) and Minimum of Rs. 25,000/- ( Rs. Twenty Five Thousand Only )

44

Primary & L & C Socs.

7.5% of the net profit with a maximum of Rs. 2,000/- ( Rs. Two Thousand Only) and Minimum of Rs. 500/- ( Rs. Five Hundred Only )

45

Primary House Building Socs.

7.5% of the net profit with a maximum of Rs. 5,000/- ( Rs. Five Thousand Only) and Minimum of Rs. 1,000/- ( Rs. One Thousand Only )

46

Transport Societies under Concurrent Audit (with route permit )

7.5% of the net profit with a maximum of Rs. 2.00 Lacs ( Rs. Two Lacs Only) and Minimum of Rs. 60,000/- ( Rs. Sixty Thousand Only )

47

Transport Societies under Annual Audit with route permit.

7.5% of the net profit with a maximum of Rs. 0.5 Lacs ( Rs. Fifty Thousand Only) and Minimum of Rs. 2,000/- ( Rs. Two Thousand Only ).

48

Transport Societies without route permit.

Flat rate of Rs. 1,000/- ( Rs. One Thousand Only ).

49

Rickshaw Pullar Societies

7.5% of net profit with a Maximum of Rs.500/- ( Rs. Five Thousand Only) and minimum of Rs. 25/- ( Rs. Twenty Five Only )

50

Milk supply societies ( Anand Pattern )

7.5% of net profit with a Maximum of Rs. 1,000/- ( One Thousand Only ) and minimum of Rs. 500/- ( Rs. Five Hundred Only ).

51

Milk Supply Societies ( Others)

7.5% of net profit with a maximum of Rs. 1,000/- ( One Thousand Only ) and minimum of Rs. 500/- ( Rs. Five Hundred Only ).

52

Diary Societies

-Do-

53

Handloom Weavers Societies

-Do-

54

KVI Societies ( Others )

-Do-

55

Fisheries Societies ( Others )

-Do-

56

Poultry Societies

-Do-

57

Pigeries Societies

-Do-

58

Industrial Societies ( Others )

7.5% of net profit with a maximum of Rs. 5,000/- ( Rs. Five Thousand Only ) and minimum of Rs. 3,000/- ( Rs. Three Thousand Only ).

59

Industrial Societies with Processing Units using powers.

7.5% of net profit with a maximum of Rs. 1.00 Lac ( Rs. One Lac Only ) and minimum Rs. 15,000/- ( Rs. Fifteen Thousand only ).

60

Joint Farming Societies

First three years of registration no audit fee and from fourth year onwards 5% of net profit with a maximum of Rs. 5,000/- ( Rs. Five Thousand only ) and minimum of Rs. 250/- ( Rs. Two Thousand Only )

61

Cooperative Multipurpose Societies

7.5% of net profit with a maximum of Rs. 1,000/- (Rs. One Thousand only ) and Minimum of Rs. 500/- ( Rs. Five Hundred Only ).

62

Grain dealers Coop. Societies

10% of net profit with a Maximum of Rs 5,000/- ( Five Thousand Only ) and Minimum of Rs. 500/- ( Rs. Five Hundred Only )

63

Tubewell Irrigation Societies

10% of net profit with a maximum of Rs. 20,000/- ( Rs. Twenty Thousand Only ) and minimum of Rs. 500/- ( Rs. Five Hundred Only )

64

Railway Venders Coop. Soc.

7.5% of net profit with a maximum of Rs. 1,000/- ( Rs. One Thousand Only ) and minimum of Rs.500/- ( Rs. Five Hundred Only ).

65

Commission Shops

a) 10% of the net profit with a maximum of Rs. 5,000/- ( Rs. Five Thousand Only ) and Minimum of Rs. 1,000/- ( One Thousand Only )

b) –Do- with maximum of Rs. 100/- ( Rs. One Hundred Only ) and Manimum of Rs. 8,000/- ( Rs. Eight Thousand only )

66.

Any other Category

7.5% of net profit with a Maximum of Rs. 1,000/- ( Rs. One Thousand Only ) and Minimum of Rs. 500/- ( Five Hundred Only ).

67

P. I.C.T.

Lump sum of Rs. 5,000/- ( Rs. Five Thousand Only)

68

I.C.D.P.

Lump sum of Rs. 25,000/- ( Rs. Twenty Five Thousand Only )

The following societies have been exempted from the audit fee :-

1. Uttam Cross breeding Union.

2. Animal Husbandary Association.

3. Forest Union.

4. Uttam Living Societies.

5. Economic Reforms Societies.

6. Health & Public welfare Societies.

7. Primary Help Animal Husbandry Centres.

8. Fruit Harvesting Societies.

9. Water Harvesting Societies.

10. Poultry Breeding Societies.

11. Fruit Development and care societies.

12. Forest Bee Breeding Societies.

13. Honey Bee Breeding Societies.

14. Reshmi Worm Breeding Societies.

15. Educatory Societies.

16. Knowledge Societies.

17. Plant Planting Societies.

18. Weaving Societies.

19. Uttam Board working societies.

20. Primary Personality Centres Societies.

21. Lakh Production Societies.

22. Milk Extraction Societies.

23. Animal Fodder Societies.

24. Consolidation Societies.

25. Old Education Societies.

26. Compulsory Education Societies.

27. Compulsory Education and Water Harvesting Societies.

Note:

1. All such Cooperative Societies would be exempted from levy of audit fee for the first year registration.

2. All such Cooperative Societies under winding up orders would be exempted from levy of audit fee. They will however, be assessed to audit fee for the year in which they are brought under winding up orders, as also for the year in which received.

3. Primary Cooperative Societies which are not functioning properly and virtually came to close due to partition of country which were exempted from levy of audit fee vide Punjab Govt. Memo No. 5219-Coop. 56-452, dated 11.3.59 would continue remain exempted from levy of audit fee. However, such of these societies which received would be assessed for audit fee for the year in which received.

4. While calculating amount of audit fee according to the above scale amount upto Rs. 5/- will be ignored and above Rs. 5/- will be rounded to next Rs. 10/-.

5. All types of unregistered societies would be assessable to audit fee according to the audit fee scales for the corresponding registered types of societies with the provisions that such societies would be exempted from levy of audit fee for the year in which they do not transact any business.

2. This issue with the concurrence of the Finance Department conveyed vide their I.D. No. 7/59/97-3FE-III/1019 dated 20.6.2006.

Sd/-

Special Secretary Cooperation

Endst. No. 70/17/90/C-I(5)/ Chandigarh, dated the

A copy is forwarded to the Accountant General, Punjab ( Accounts and Entitlement ) & Audit Sector 17, Chandigarh for information and necessary action with reference to this department Endst. No. 70/17/90/C-II(4)/8107 Dated 22.6.1998

Sd/-

Special Secretary Cooperation

Endst. No.70/17/90/C-I/(5)/8777 Chandigarh, dated the 25.7.2006

A copy is forwarded to the Chief Auditor, Cooperative Societies, Punjab w.r.t. this department Endst. No. 70/17/90/C-I(5)/8108 Dated 22.6.1998 for information and necessary action.

Sd/-

Special Secretary Cooperation

A copy is forwarded to the Under Secretary Finance (U) ( in FE-III Branch ) Department of Finance Punjab w.r.t. their I.D. No.