Cooperative Societies Act, 1912
28. Power to exempt from income-tax, stamp- duty and registration fees
8[(1)] The 9[Central Government], by notification1 in the 9[Official Gazette], may in the case of any registered society or class of registered society remit 10[***] the income-tax payable in respect of the profits of the society, or of the dividends or other payments received by the members of the society on account of profits.
12[(2) The 9[Government], by notification in the 9[Official Gazette], may, in the case of any registered society or class of registered society, remit :-
(a) the stamp-duty with which, under any law for the time being in force, instruments executed by or on behalf of a registered society or by an officer or member and relating to the business of such society, or any class of such instruments, are respectively chargeable, and
(b) Any fee payable under the law of registration for the time being in force.]
13[In this sub-section "Government" in relation to stamp-duty in respect of bills of exchange, cheques, promissory notes, bills of lading, letters of credit, policies of insurance, 14[transfer of shares, debentures,] proxies and receipts, and in relation to any stamp-duty falling within 15[entry 96] in List I in the Seventh Schedule to 16[the Constitution], means the Central Government, and save as aforesaid means the 17 [State Government]
The governance of societies also differs from that of trusts; societies are usually managed by a governing council or managing committee, whereas trusts are governed by their trustees.Individuals or institutions or both may be members of a society. The general body of member’s delegates the management of day-to-day affairs to the managing committee, which is usually elected by the membership. Members of the general body of the society have voting rights and can demand the Submission of accounts and the annual report of the society for inspection. Members of the managing Committee may hold office for such period of time as may be specified under the bylaws of the society.
Societies, unlike trusts, must file annually, with the Register of Societies, a list of the names, addresses And occupations of their managing committee members. Furthermore, in a society, all property is held in The name of the society, whereas all of the property of a trust legally vests in the trustees. Unlike trusts, societies may be dissolved. Dissolution must be approved by at least three-fifths of the Society’s members. Upon dissolution, and after settlement of all debts and liabilities, the funds and property of the society may not be distributed among the members of the society. Rather, the remaining funds and property must be given or transferred to some other society, preferably one with similar objects as the dissolved entity.