Non profit company- income tax and companies act

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John K (Querist)

03 June 2019 Please study the following case and guide me.

I came to do accounts of a religious org ..it is non profit company registered under ROC.

But I found that there are transactions of students group ( Youth division) run by students inside it carrying on students religious activities.

Transactions are below 50000. Only accepts donations from people and spending it for their activities..ofcourse religious activities.

But these donations are not receipted in Organizations main receipt book and expenses not recorded in non profit company s main payment vouchers.

They have their own receipt book and payment vouchers..

Since their transactions are low.they are not having bank account.but keep in cash.

But all transactions are below 5000 or like.

My question is

Can we incorporate these transactions while preparing the accounts of Non profit company even if they are maintaining separate receipt book and payment vouchers and they are having seperate cash book.

In others words whether if these transactions are receipted in main receipt books only, can we include the same in Non profit company financial statements.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

03 June 2019 Check the activities are carried on in the name of the company if yes include it otherwise not required.
Talk to the management if they are not part of the company don't include.

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