Sir trust is carrying on Businees incidental to the objective of trust. It will be maintaning books of accounts and claiming depreciation accordingly. But since they are exempt from tax. There has to be Deferred tax as per AS-22 on account of depreciation.
30 December 2009
It is not the differed tax as per AS 22 it is the general dep on assets which the trust is maintaining. AS 22 will be applied if he is following any commercial activities.so there is no relation of depreciation with AS 22 because he is also not filing any IT return because of tax exemption. Conclusion: All AS will apply if the trust is carrying any commercial activity.