Rule 114e and form 61a

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Querist : Anonymous

Querist : Anonymous (Querist)

21 May 2017 Can you please discuss and explain whether Charitable Institutions registered u/s 12A of the Act and is subjected to Audit u/s 12A(b) of the Act and has been filing its report in Form No 10B is liable for reporting SFT (Specified Financial transactions) under Rule 114E r/w Sec.285BA. In the table under Rule 114E(2) item No 11 column 3 specifically provides that it is applicable only for persons liable for audit u/s 44B of the Act. Further, even while extending the dates for filing the Returns of Income, CBDT notifies that “Assessees liable for Audit” which includes 12A(b) and 44AB and other provisions of the Income-tax Act. Also, as per the amended provisions there are other provisions that Charitable Institutions cannot accept cash more than a specified limit. As such whether 114E is attracted for Charitable Institutions in view of the specific classes of persons.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 May 2017 If charitable institution accepts any cash payment exceeding the limit 114E is attracted.

Querist : Anonymous

Querist : Anonymous (Querist)

21 May 2017 Can u please let me know under which sl no in table u/s 114E your opinion fits in

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 May 2017 Sl No. 11 Receipt of cash payment exceeding two lakh rupees for sale, by any person, of goods or services of any nature.
No reporting is required by Charitable Institution if no such transactions happened.

Querist : Anonymous

Querist : Anonymous (Querist)

21 May 2017 However in the same serial no viz 11 column 3 clealy says it applies only to Persons liable for Audit u/44AB alone. That was my precise question. It does not say it applies to all

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 May 2017 I agree with you it applies to persons liable for Audit u/s 44AB alone.

Querist : Anonymous

Querist : Anonymous (Querist)

21 May 2017 What about Chiranjeevi institution please a little elaborate on Sec 44AB and 12A(b) provisions would be more elpful

Querist : Anonymous

Querist : Anonymous (Querist)

21 May 2017 Sorry charitable institutions have mispelt as the the other one sorry for the mistake happened due to auto correction

Querist : Anonymous

Querist : Anonymous (Querist)

21 May 2017 Sorry charitable institutions have mispelt as the the other one sorry for the mistake happened due to auto correction

Querist : Anonymous

Querist : Anonymous (Querist)

21 May 2017 Can u please urgently reply mine since my bozz is angry with me for my interpretation

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 May 2017 Confirm your institution is receiving cash payment exceeding 2 lacs for sale of goods or provision of services.
What is the nature of service rendered by your institution.
44AB audit provisions not applicable to charitable trust where commercial activity is not involved.

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