62. Funds not to be
divided by way of profits.-(1) No part of the funds,
other than net profits, of a multi-State co-operative society
shall be divided by way of bonus or dividend or otherwise
distributed among its members.
(2) The net profits of a multi-State co-operative society
referred to in sub-section (1) in respect of a society earning
profits shall be calculated by deducting from the gross profit
for the year, all interest accrued and accruing in relation
to amounts which are overdue, establishment charges, interest
payable on loans and deposits, audit fees, working expenses
including repairs, rent, taxes and depreciation, bonus payable
to employees under the law relating to payment of bonus for
the time being in force, and equalisation fund for such bonus,
provision for payment of income-tax and making approved donations
under the Income-tax Act, 1961 (43 of 1961), development rebate,
provision for development fund, bad debt fund, price fluctuation
fund, dividend e ualisation fund, share capital redemption
fund, investment fluctuation fund, provision for retirement
benefits to employees, and after providing for or writing
off bad debts and losses not adjusted against any fund created
out of profit: Provided that such society may add to the net
profits for the year interest accrued in the preceding years,
but actually recovered during the year: Provided further that
in the case of such multi-State co-operative societies as
do not have share capital, the surplus of income over expenditure
shall not be treated as net profits and such surplus shall
be dealt with in accordance with the bye-laws.
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