Labour comes on board after 14 years in the UK. Keir Starmer is the new Prime Minister.
Cooperatives, collectives, collective enterprises, collective action. At least 120 year strong movement in the country. Cooperatives under Cooperatives Acts (1912/1964). Cooperatives under Mutually-aided cooperative act, self-regulating cooperative acts. Multi-state Cooperative act (2023). Producer companies under the Companies’ act. Self-help groups. Federations, Federations of Federations. In credit, milk, sugarcane, fish, handlooms, handicrafts, farming, commodity, fertilizers, multi-purpose, labour, energy, forestry, water, self-employed, housing, non-profit et al. Millions of them, in 29 sectors. Some functional. Some efficient, effective. Some stand tall. AMUL stands tallest amongst all. More sectors are possible for cooperatives to emerge – insurance, retail, education, IT, entertainment, services et al. Collectives offer inclusion, solidarity, fairness, sustainability to marginal producers, service producers.
Cooperative, collective is a member-owned, member-controlled group, association, organization, network, forum, platform that meets members’ common, economic, social, and/or cultural needs and aspirations. Its predominant values include: self-help, self-responsibility, democracy, inclusion, solidarity, equality, equity, patronage. Universally agreed seven cooperative principles: Voluntary and open membership; democratic member control; members’ economic participation; autonomy; member education, information; cooperation among cooperatives; concern for community.
Cooperatives are taxable, as associations of persons. GST is applicable. For income tax, Minimum Alternate Tax of 15% is possible for them. Cooperative dividends do not attract tax. Cooperatives can pay members in two tranches – one as initial payment for the produce, service; second as price differential later. This can reduce the surplus, and therefore, the taxable amount of the cooperative. There are 100% tax exemption to cooperatives, particularly primary cooperative societies, if they surpluses from agricultural, fishing, dairying activities, marketing aggregated produce, supplying milk, oilseeds, fruits, vegetables etc., to federations, government companies, local governments, or the public directly etc., storage services etc. However, this list is not comprehensive to cover the entire value-chain and/or food systems elements.
Can we exempt these collectives and their federal entities from GST? At least on small turnovers, not exceeding Rs.5 or 10 Crore. Can they be exempt from income tax, up to at least Rs.1 Crore, followed by 15% minimum alternate tax above this amount? Can we have service collectives, enterprise collectives? Can we bring all our 90% population under the collective, cooperative umbrellas, and offer micro-financial services, care services, support services, agency services? Can the local enterprises, and collectives meet the majority needs of the majority people of the country, in the Amrt kaal, for us to have natural living? Education, learning, health, natural farming, food-nutrition, livestock, stay, entertainment, travel, energy, water, digital, services etc. Can we?
We are entrepreneurial, self-employed by our DNA. We are an enterprise country. We are local. We are collective. We meet our needs. We are self-reliant together, collectively, cooperatively, systemically. Can we take ourselves into local collectives, enterprises at least 2 for each one of us?
Yes, we can. If we coexist, if we co-flow in co-streams. In N? ikyasanghayoga for 7L.
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