Statutory Audit of a Co-operative Housing Society — A Committee's Guide

What the law requires

Under Section 81 of the Maharashtra Co-operative Societies Act and Bye-Law 147, every registered housing society must have its books audited every year by an auditor empanelled with the Commissioner for Co-operation. The audit report in Form 7 must be filed with the Registrar.

Audit classifications

The auditor grades the society on a scale of A, B, C, or D. Grade D triggers a special audit and the committee can be held personally liable. Anything below A warrants immediate attention.

Documents the auditor will demand

• All seven statutory registers (Form I Members, Nominee Register, Share Register, Minutes Book, Cash Book, Ledger, Property Register).
• Every voucher for every entry — receipts and payments.
• Bank statements and reconciliation for all accounts.
• GST returns filed (GSTR-1, GSTR-3B) if monthly collections > Rs 20 lakh aggregate.
• TDS challans and returns (Form 26Q) for vendor payments.
• Income tax return in ITR-5.
• Fixed asset register with depreciation schedule.
• Tax invoices issued under SAC 9972.

Common objections

Missing ITR or GSTR filings, cash payments above Rs 10,000 violating Section 40A(3), transfers without board resolution, unpaid Professional Tax, and non-maintenance of the sinking fund.

How MSCS keeps you audit-ready

Every register, invoice, voucher and bank reconciliation is generated and stored continuously — so on audit day you export a zip of the fiscal year and hand it to the auditor. No last-minute scramble.