Particular Applicable to Co-op. Society Applicable to NTC
Authority Co-op. Society is both State &
Central Act. There is a separate set up under the Co-operative Department
Non Trading Corporation is a state level Act, which is monitored by Registrar, NTC, delegated to Sales Tax Department
Concept of Benefit Co-operative Society is on the principal of co-operation and can also take commercial or profit earning Activities NTC impart Non Trading activities for the benefit of its member, without carrying commercial or profit making activities
Status Co-operative Society is assessed as a Co-operative Society under Income Tax. There are separate provisions and rate of assessment for the Societies Under Income Tax NTC is considered as AOP, taxed at maximum marginal rate if there is a surplus or the surplus is allocated to the member and in the hands
of the member such surplus is taxable
Audit Monitoring Registrar is the Authority for all purpose. C.A. as well as certified auditors and the department of Co-operative Society are authorized for audit; detailed audit structure is adopted and monitored by the registrar. In the state of Gujarat NTC is required to get its accounts audited. The Chartered
Accountants are authorized to carry the Audit. There is no Audit monitoring system by the Registrar for NTC.
Distribution of Surplus Society can distribute its surplus by way of Dividend NTC can not distribute the surplus, since it is for non profit making activities
Membership Membership is by way of share,
which can be regular member as well as nominal member
Membership is by way of allotment of shares and are transferable as per the articles of association
Basic Documents for Registration By-laws is basic document & model is prescribed under the rules of the Co-op. Soc. for different class of Society Memorandum of Association and
Articles of the Association, which
provide for all administrative and
working rules for the management.

14 thoughts on “Difference Between Cooperative Society & NTC

  1. Sir..Truly apricate your time and information, however my society is NTC (Non Trading Corporation ) and NTC closed in 2005. such society not converted in to service or Co-operative society. my question is after repeal of NTC in 2005 does society have any rights to oppose on pre school building construction.

    one more request is where can find NTC gaget after repeal the law in 2005 which shows that what kind of rights left with NTC association.
    i would again apricate for your time

    1. 1. While NTC Act was repealed in 2005, existing NTC has bounded by Sec 7 of Bombay General Clause Act 1904

      2. NTC operates based on its MOA and AOA and resolution passed in its AGM. Answer to your question will be in one of these documents.

      3. Irrespective of the formation, above judgment will hold for any formation whether Cooperative or NTC.

      4. Last any property which is declared for residential purpose while passing plan, any changes done for it usage would require approval the relevant regulatory body.

  2. Our Building has 20 units. Bank account is opened in the name of Members association. do we need to register our Members Association with any government agency and what government rules applies to our association. can our association charge maintenance and transfer fees as per rules signed by all 20 members or there are government rules to be followed ?

    1. Please find revert to below query.

      1. Whether it is built after 2017 or before 2017 (After RERA is implemented). Incase it falls under RERA, then either the Service Society or Section 8 company can only be formed.
      2. In case it is just an Association of People (AOP), you will need to take a pan card, no other registration will be required with any other agency.
      3. Other formalities required at your end will be getting a yearly Fire NOC and  every 5 year Lift License renewal on AOP name.
      4. There are no specific norms for AOP. AOP operates based on MOA and AOA / AOP Deed. So if MOA and AOA / AOP deed allows it, they can charge a tenancy and transfer fee.
      5. Check if you have a legal gutter connection.
      6. Last but not the least, check land ownership details.

  3. Sir, is it mandatory to obtain share certificate from seller, if I buy property registered under Bombay NTC Act 1959? As NTC act is repealed in 2005, the seller is telling that it is not mandatory now to own a share certficate.

  4. Hello Sanjay ji,

    Your article is brilliant, need more light on the below issue from you.

    Can family member of a flat other than person who owns the flat, i.e flat is registered in the name of Wife, can husband go on the board of the society and can he hold the post of president?

    If yes, which section support it or any judgement to this effect and if not than, can we pass a resolution to enable this by amending the MOA and AOA of the NTC and since act is repealed do we need to file this amended MOA and AOA to any authority?

    Thanks in Advance!!

    1. 1. Only the owner of the flat (name in Index Copy) can become a member of society. Only members can become committee members and from committee members, a president is chosen. Thus the answer to your question is no, husband cannot hold a position for a flat in the name of wife.
      2. Amending MOA and AOA is also not possible
      3. As the act is repealed, there is government department / authority for NTC
      4. There was also an advisory from the Government in 2016 to convert NTC to Service Societies. Will be sharing it in a separate article in a few days.

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