Sponsered trust
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
17 September 2011
A company opens a trust. Expenses of such trust is borne by the company. Such trust is meant for promoting the industry , of which such company is a part.
Can such trust apply for 12A/80G. If it gets it anyway, does the expenses borne by company of such trust suddenly reduce to 50% allowable? Also is payment to such trust is revenue expenditure?
A company opens a trust. Expenses of such trust is borne by the company. Such trust is meant for promoting the industry , of which such company is a part.
Can such trust apply for 12A/80G. If it gets it anyway, does the expenses borne by company of such trust suddenly reduce to 50% allowable? Also is payment to such trust is revenue expenditure?
21 September 2011
1. Yes, the trust can apply for registration u/s 12A & 80G.
2. The expenses borne by company will be treated as donation in the books of the trust.
The company can claim the same as deduction u/s 80G. However, only 50% will be allowed as deduction.
3. For income tax purpose such expense is not allowed while computing business income but allowed as deduction from total income.
2. The expenses borne by company will be treated as donation in the books of the trust.
The company can claim the same as deduction u/s 80G. However, only 50% will be allowed as deduction.
3. For income tax purpose such expense is not allowed while computing business income but allowed as deduction from total income.
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
- Post Office RD Interest
- Building and other construction workers welfare cess act 1996
- Eway bill for machinery reparing
- Applicable TDS for Purchase of Flat from NRI
- Bank Accounts in Balance Sheet for ITR 3
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- Form 10BD Filling
- Annual return of gst limit
- TDS ON CASH WITHDRAWALS...
- ITR Filing Requirement for Partnership Firm Registered but Business Not Commenced
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
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
