Why do you think cooperative is tax free by the government?
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Answer:
Cooperatives pay taxes on real estate, personal property, sales, employment, utilities, etc. just like all other businesses. Cooperatives are single taxed like all other businesses except for C-corporations, which are double taxed at the entity and the stockholder levels.
cooperative society’ means a cooperative society registered under the Cooperative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State for the registration of the cooperative societies.
A business can be formed under the organisational set up of a cooperative society just like it can be formed as a Company. There is a general belief that cooperative societies are exempted from the various compliance of direct or indirect taxation. In fact it is not so – rather to get the various tax reliefs, particularly for income tax, a cooperative society must set up a process for tax compliance, tax management and tax planning.