28 June 2016
A school is run by trust and its income is exempt from income tax. The trustees have given guarantee to Bank for loan received by school. For this the school shall pay the trustees guarantee commission. Will the commission received by trustees be taxable under service tax? Please also let me know the service under which this commission will be covered.
28 June 2016
in my opinion pls check trust deed, in which its always write that trustee never take any benefit directly or indirectly from their activity for the trust. if trust deep allowed than you have to deduct the tds and trustee pay the income tax on filing of return., and if receipts exceeds rs. 10 lacs then they are liabile to charge service tax.
CAclubindia
