Reg: business entity

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8939650622 (Querist)
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10 June 2013 Dear sir,
Please tell the definition of "Business entity". any establishment registered as a "trust" or "Society" and doing any activities and earning profits, will come under the definition of "Business Entity".
Waiting for your expert advice.....
Thanking you....

Ganeshbabu K

Ganeshbabu K (Expert)
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10 June 2013 In some cases, reverse charge is applicable only when service receiver is business entity registered as ‘body corporate’.

1)“Business entity” means any person ordinarily carrying out any activity relating to industry, commerce or any other business or profession. Thus, Government, charitable organisation is not ‘business entity’.

2)Body Corporate – Company, LLP, Cooperative Society is Body Corporate – Firm, HUF, Trust is not ‘Body Corporate’ [Society registered under Societies Act is legally not ‘body corporate’].

Thanks & regards
Ganesh babu k

8939650622

8939650622 (Querist)
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10 June 2013 dear ganesh babu sir,
Sub: reference to the answer for the definition "business entity"

According to your answer, if the charitable institution registered as a "trust" or "society" is doing any activity is not treated as "business" Right?

8939650622

8939650622 (Querist)
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11 June 2013 Dear ganesh babu sir,
Sub:Business entity
Am waiting for your answer....
thanking you....

Ganeshbabu K

Ganeshbabu K (Expert)
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11 June 2013 As per my understanding..

Charitable organisation (trust) is not a business entity..as it is formed for charitable purpose

But Co-operative society is a business entity

As co-operative societies generate profit in conducting business and profit generated is distributed to members on basis on participation in business.

Thanks & regards
Ganesh babu k

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