Lok Sabha Question No. 3301 (UNSTARRED), answered on 2023-03-21
Subject: Sahakar se Samriddhi
Ministry: COOPERATION
Asked by: Y. S. Avinash Reddy, Komati Reddy Venkat Reddy, Manne Srinivas Reddy

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 3301 TO BE ANSWERED ON 21/03/2023

## Sahakar se Samriddhi

## 3301.   SHRI Y. S. AVINASH REDDY: SHRI KOMATI REDDY VENKAT REDDY: SHRI MANNE SRINIVAS REDDY:

Will the Minister of COOPERATION ( सहकाįरता मंũी ) be pleased to state:

(a)  whether  the  Government  is  working  towards  the  goal  of  'Sahakar  se  Samriddhi',  and resolve to connect the spirit of cooperation with the spirit of Amrit Kaal;

(b) if so, the details and present status thereof;

(c) whether the Government also proposes for new cooperatives that commence manufacturing activities till 31.03.2024 to get the benefit of a lower tax rate of 15 percent, as is presently available to new manufacturing companies;

(d)  whether  the  Government  proposes  to  provide  an  opportunity  to  sugar  cooperatives  to claim payments made to sugarcane farmers for the period prior to assessment year 2016-17 as expenditure and this is expected to provide them with a relief of almost Rs. 10,000 crore; and

(e)  if so, the details and present status thereof and grievances still pending along with reasons therefor?

## ANSWER

## THE MINISTER OF COOPERATION सहकाįरता मंũी (SHRI AMIT SHAH)

(a)  &  (b):  Since  its  formation in  July, 2021,  the  Ministry of  Cooperation  has taken various initiatives to promote cooperative based economic development model, strengthen cooperative  movement  and  deepen  its  reach  up  to  the  grassroots  to  realize  the  goal  of 'Sahakar-se-Samriddhi'  and  resolve  to  connect  the  spirit  of  cooperation  with  the  spirit  of Amrit Kaal. Some of these major initiatives include:

1. Computerization of PACS: Process to onboard 63,000 functional PACS on an ERP based common national software with an outlay of ₹2,516 Crore started.
2. Model byelaws for PACS: Model byelaws prepared and circulated for their adoption as per  the  respective  State  Cooperatives  Act  to  enable  PACS  to  undertake  more  than  25 business activities like dairy, fishery, setting up of godowns, LPG/ Petrol/ Green energy distribution agency, banking correspondents, CSC, etc.
3. PACS as Common Service Centres (CSC): MoU signed between Ministry of Cooperation, Ministry  of  Electronics  and  Information  Technology,  NABARD  and  CSC  -  SPV  to facilitate functioning of PACS as CSCs to improve their viability, provide e-services at village level and generate employment.
4. National Cooperative Database: Preparation of an authentic and updated data repository of cooperatives  in  the  country  started  to  facilitate  stakeholders  in  policy  making  and implementation.
5. Establishment  of  Multi-Purpose  PACS,  Dairy  and  Fisheries  Cooperative  Societies  in every Panchayat/Village: A plan has been approved by the Government to set up 2 lakh new multi-purpose PACS, dairy and fisheries cooperatives covering every Panchayat/Village in the next five years by taking advantage of various existing schemes.
6. National  Cooperative  Policy:  A  National  level  committee  comprising  of  experts  and stakeholders drawn  from  all over the Country  constituted to  formulate  the  New Cooperation Policy to create an enabling ecosystem to realize the vision of 'Sahakar-seSamriddhi'.
7. Amendment of MSCS Act, 2002: Bill introduced in the Parliament to amend the centrally administered MSCS  Act, 2002 to incorporate provisions of 97 th Constitutional Amendment,  strengthen  governance,  enhance  transparency,  increase  accountability  and reform electoral process in the Multi State Cooperative Societies.
8. National Cooperative Development Corporation: New schemes for cooperatives launched by  NCDC  in  various  sectors  such  as  'Swayamshakti  Sahkar'  for  SHG;  'Deerghavadhi Krishak  Sahkar'  for  long  term  agricultural  credit;  'Dairy  Sahkar'  for  dairy  and  'Neel Sahkar'  for  fisheries.  Total  financial  assistance  of  Rs.  34,221  Crores  disbursed  in  FY 2021-22.
9. Member  Lending  Institutions  in  Credit  Guarantee  Fund  Trust:  Non-scheduled  UCBs, StCBs  and  DCCBs  notified  as  MLIs  in  CGTMSE  Scheme  to  increase  share  of cooperatives in lending.
10. Cooperatives as 'buyers' on GeM portal: Cooperatives permitted to register as 'buyer' on GeM,  enabling  them  to  procure  goods  and  services  from  nearly  40  lakh  vendors  to facilitate economical purchases and greater transparency.
11. Reduction in surcharge on cooperative societies: Surcharge reduced from 12 % to 7% for co-operative societies having income between Rs. 1 to 10 Cr.
12. Reduction  in  Minimum  Alternate  Tax:  MAT  reduced  for  cooperatives  from  18.5%  to 15%.
13. Relief  under  Section  269ST  of  IT  Act:  A  clarification  has  been  issued  to  remove difficulties in cash transactions by cooperatives under Section 269ST of IT Act.
14. Lowering tax rate for new cooperatives: Announcement made in the Union Budget 202324  to  charge  flat  lower  tax  rate  of  15%,  compared  with  current  rate  of  upto  30%  plus surcharge,  for  new  cooperatives  commencing  manufacturing  activities  till  March  31, 2024.
15. Increase in limit of deposits and loans in cash by PACS and PCARDBs:  Announcement made in the Union Budget 2023-24 to increase limit from Rs. 20,000 to Rs. 2 lakh per member for deposits and loans in cash by PACS and PCARDBs.
16. Increase in limit for TDS: Announcement made in the Union Budget 2023-24 to increase cash  withdrawal  limit  for  cooperatives  from  Rs.  1  Crore  to  Rs.  3  Crore,  per  annum, without being subjected to TDS.
17. Relief  to  Sugar  Cooperative  Mills:  Sugar  cooperative  mills  not  to  be  subjected  to additional  income  tax  for  paying  higher  sugarcane  prices  to  farmers  upto  Fair  and Remunerative or State Advised Price.
18. Resolution of chronic pending issues of Sugar Cooperative Mills: Announcement made in the  Union  Budget  2023-24  to  allow  sugar  cooperatives  to  claim  as  expenditure  their payments to sugarcane farmers for the period prior to assessment year 2016-17, giving a relief of nearly Rs. 10,000 crores.
19. New  National  Multi-State  Cooperative  Seed  Society:  New  apex  national  multi-state cooperative  seed  society  being  established  under  the  MSCS  Act,  2002  as  umbrella organization for quality seed cultivation, production and distribution under a single brand.
20. New National  Multi-State  Cooperative  Organic  Society:  New  apex  national  multi-state cooperative  organic  society  being  established  under  the  MSCS  Act,  2002  as  umbrella organization to produce, distribute and market certified and authentic organic products.
21. New  National  Multi-State  Cooperative  Export  Society:  New  apex  national  multi-state cooperative  export  society  being  established  under  the  MSCS  Act,  2002  as  umbrella organization to give thrust to exports from cooperative sector.

(c): As  per the budget announcement  2023-24,  in  order  to promote  the growth  of manufacturing  in  co-operative  sector,  a  new  co-operative  society  formed  on  or  after 01.04.2023, which commences manufacturing or production by 31.03.2024 and do not avail of any specified incentive or deduction, is proposed to be allowed an option to pay tax at a concessional rate of 15 per cent similar to what is available to new manufacturing companies. (d) & (e): As per the budget announcement 2023-24, which will be effective from 01.04.2023, for sugar co-operatives, for years prior to assessment year 2016-17, if any deduction claimed for  expenditure  made  on  purchase  of  sugarcane  has  been  disallowed,  same  shall  be approved  by  the Government for such previous years. This decision of the Government will provide benefit of approximately ₹10,000 crore of principal amount of Income-Tax to sugar cooperatives. For this purpose, all sugar co-operatives, who are eligible for deduction, are required to approach recomputed  after allowing such  deduction upto the price fixed or the assessing officer, suitably.

******