The requirements for societies in India to be in compliance, may vary depending on a variety of criteria including the state in which the society is registered, the nature of the activities that the society engages in, and any special legislation that are applicable to the society.
1. Keeping Accurate Books of Accounts: Societies are obligated to keep accurate books of accounts, which must include detailed details of their income, expenses, payments received, and payments made. The accounting records should be kept in a manner that is consistent with widely accepted accounting standards (GAAP).
2. Auditing on a yearly Basis: In most cases, societies are required to have their financial records examined and verified on a yearly basis by a competent chartered accountant. Following the completion of the auditor's investigation and preparation of the audit report, the documents are subsequently handed over to the relevant regulatory agencies.
3. Submission of Annual Returns: It is mandatory for societies to submit annual returns to the Registrar of Societies. The society's operations, financial situation, and governing body are described in the annual returns, which are provided for informational purposes.
4. General Body Meetings: All societies are mandated to conduct ageneral body meetings at predetermined time intervals, which are outlined in their governing documents. During these meetings, the members of the society have the opportunity to discuss and decide on matters pertaining to the activities and management of the society.
5. Modifications to the Society's Memorandum of Association and Rules and Regulations: Any modifications or revisions that are made to the society's memorandum of association or rules and regulations need to be communicated to the Registrar of Societies within prescribed time period.
6. Compliance with Tax legislation: Societies are obligated to follow tax legislation. One such requirement is having a Permanent Account Number (PAN) and the completion of annual tax returns. If they are eligible, certain societies that participate in certain activities may also be required to comply with requirements pertaining to tax exemptions.
7. Compliance with the Regulations Regarding Foreign donations: If a society is in receipt of foreign donations, then it is obligated to comply with the requirements of the Foreign Contribution Regulation Act (FCRA). This includes complying with reporting and utilisation standards for foreign contributions, as well as getting prior authorisation or registering under the Foreign Corrupt Practises Act (FCRA).
8. Maintenance of Statutory Registers and Documents Societies are required to maintain and keep up to date a variety of statutory registers and documents. These registers and documents include registers of members, registers of members of the governing body, minutes of meetings of the general body, and other relevant records.
9. Compliance with State-specific Regulations: It is necessary for societies to ensure that they are in compliance with any state-specific regulations that are relevant to the activities that they engage in. There is a possibility that certain states have special legislation controlling societies, in addition to general compliance requirements.
In India, what are the most fundamental compliance standards that a society must meet?
In India, maintaining books of accounts, carrying out annual audits, submitting annual returns, holding general body meetings, and complying with applicable tax legislation are the fundamental requirements for a society to meet in order to be in conformity with the law.
Who can perform an audit of the financial records of a society?
In most cases, a trained chartered accountant will do an audit on the financial records of a society. An audit consists of the auditor looking over the financial statements and providing a report on their findings, which is then handed over to the relevant authorities.
What is the regularity of submitting annual returns for a society?
The Registrar of Societies requires societies to submit annual returns to them as part of their compliance requirements. The state in which the society is registered may require a different number of filings at different intervals. In most cases, annual returns are only submitted once every calendar year.
Is it possible for a society to have its meetings of the general body online?
The answer to your question is that it is possible for societies to have their general body meetings remotely, provided that they adhere to the guidelines outlined in their rules and regulations. In order to assist compliance during extreme situations or for the convenience of members, the option to conduct meetings virtually has been made available as a flexible meeting option.
Whether or not societies are required to comply with any taxes?
Yes; societies are required to adhere to the legislation regarding taxes. This involves g applying for a Permanent Account Number (PAN), filing annual income tax returns, and adhering to any tax exemptions or benefits they may be qualified for under the Income Tax Act, 1961. Also included in this requirement is the obtaining of a Permanent Account Number (PAN).
What are the compliance requirements for organisations that receive contributions from outside the country?
The terms of the Foreign Contribution Regulation Act (FCRA) must be complied with by any society that receives donations from outside the country. This involves getting prior approval or registering under the FCRA, keeping separate bank accounts for contributions from foreign countries, and adhering to reporting and utilisation standards.
Are there any compliance requirements for societies that are peculiar to a given state?
Yes; there is a possibility that some states in India have additional compliance requirements or particular legislation controlling societies. It is imperative that societies are aware of and in compliance with any state-specific rules that are applicable to the activities that they engage in.
What kinds of statutory registers and documents must be kept in order for a society to fulfil its obligations?
According to the Societies Registration Act, 1860, societies are obligated to keep a variety of statutory registers and documents, such as registers of members, registers of governing body members, minutes of general body meetings, and other related records. Societies are also required to maintain different statutory registers and documents.
What consequences are there for a society that does not fulfil its commitments under the law?
If a society is found to be in violation of its legal responsibilities, the organization's registration could be revoked and the society could face penalties and fines. In order for societies to keep their legal and regulatory status intact, it is essential for them to assure compliance in a timely and correct manner.