A CSR section 8 company received donations from the other company under CSR activity. The said amount is not shown as income but is shown as donation to Corpus fund. Hence it is not not shown as income in profit and loss account.
Query1 - Is the amount received as Corpus donation taxable in the hands of CSR company?
Query - 2 Is it a right practice to treat donations received as capital receipt instead of income in the profit and loss account of CSR company?
CAclubindia
