Audit of a trust (educational institution) u/s 44ab
This query is : Resolved
03 December 2017
Dear Experts,
A trust running a school, registered u/s 12AA, having turnover more than 1 CR is liable to tax audit? Income of the trust is not a business income. Though the definition of business is not exhaustive can the income be considered as business income and made liable to tax audit?
I also went through the guidance note on tax audit which specifically says, inter alia, if their turnover
in business exceeds the prescribed limit.
My understanding is that a trust is liable for tax audit only if it is carrying on a 'business' other than of its objects.
Am I correct? Please help.
A trust running a school, registered u/s 12AA, having turnover more than 1 CR is liable to tax audit? Income of the trust is not a business income. Though the definition of business is not exhaustive can the income be considered as business income and made liable to tax audit?
I also went through the guidance note on tax audit which specifically says, inter alia, if their turnover
in business exceeds the prescribed limit.
My understanding is that a trust is liable for tax audit only if it is carrying on a 'business' other than of its objects.
Am I correct? Please help.
04 December 2017
It will be liable to tax audit. If the trust is running school, running of school shall be considered as business and the definition of business also includes vocation as well
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Taxable or Tax exempt
- CAPITAL GAIN BASE ON NOTIFICATION
- Form 140 tds
- TDS Deducted AY-2013-14 Not Reflected in 26as
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Demand Outstanding AY 2013-14 TDS Deducted not shown in 26as
- ADVANCE PAYMENT OF ADVOCATE
- NRI starting business in India
- UNWANTED CREDIT BALANCE OF GST AS PER BOOKS
- Invertaded duty struture
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
