Trust registration
This query is : Resolved
05 March 2018
We are running and form a trust for giving training to specific doctors (Bariatric, AWR Surgeons) this is specific clause in trust deed at the time of trust deed made.
Now my question is with this clause Shall i apply for 12A registration ? Or i need to modify the deed?
Now my question is with this clause Shall i apply for 12A registration ? Or i need to modify the deed?
05 March 2018
Types of educational Institutions eligible for exemption u/s 10(23C):
Educational institution dealt with in the Income tax Act is dependent on quantum of annual receipts. Any income received on behalf of educational institutions existing solely for educational purposes and not for purposes of profit, if the aggregate annual receipts do not exceed Rupees one crore is also exempt under sub-clause (iiiad) read with Rule 2BC.
12A registration not required if your trust falls in above category.
Educational institution dealt with in the Income tax Act is dependent on quantum of annual receipts. Any income received on behalf of educational institutions existing solely for educational purposes and not for purposes of profit, if the aggregate annual receipts do not exceed Rupees one crore is also exempt under sub-clause (iiiad) read with Rule 2BC.
12A registration not required if your trust falls in above category.
06 March 2018
Thanks you so much sir.
But for our trust we already crossed 1Cr total receipts because we received foreign funds also.
sir i am having another doubt, what are the documents we need to maintain relating to trust.(We are having different types of receipts, these are Only registration fees, Registration aswellas accomodation also)
Please give me clarity what is the information i need to maintain as an accountant.and what are all the sections i need to keep in mind relating to Trust?
But for our trust we already crossed 1Cr total receipts because we received foreign funds also.
sir i am having another doubt, what are the documents we need to maintain relating to trust.(We are having different types of receipts, these are Only registration fees, Registration aswellas accomodation also)
Please give me clarity what is the information i need to maintain as an accountant.and what are all the sections i need to keep in mind relating to Trust?
07 March 2018
Receiving foreign funds as donation registration under 12a required and FCRA registration and regulations to be followed.
07 March 2018
Sir,
Now i can apply for FCRA registration and what are the documents required for FCRA registration.
Please give me any alternate suggestion for claiming exemption for Filing ITR for 2016-17 .
Now i can apply for FCRA registration and what are the documents required for FCRA registration.
Please give me any alternate suggestion for claiming exemption for Filing ITR for 2016-17 .
07 March 2018
And another doubt Relating to GST for trust related activity.
We are received funds (Registration fees) on that we need to pay IGST (Because funds received from Individuals),
Now i am getting mail intimation from Superintendent, Trust is having Registration certificate of GST and not filled returns at all.
We are received funds (Registration fees) on that we need to pay IGST (Because funds received from Individuals),
Now i am getting mail intimation from Superintendent, Trust is having Registration certificate of GST and not filled returns at all.
07 March 2018
Once registered under GST you need to file GST return. Nil return is required to be filed.
07 March 2018
Sir, no need to pay any GST at all ( For receving registration fees), so i need to file Nil return at all.
02 August 2025
Thanks for laying out all your concerns — you’ve touched on **Income Tax (12A/10(23C)), FCRA, and GST** for a **medical training trust** with receipts over ₹1 crore, including **foreign funds**.
Let’s clarify everything in order so you can ensure **full legal compliance** and avoid penalties.
---
## ✅ **1. Can You Apply for 12A (Now 12AB) With Your Current Deed Clause?**
**Yes**, you **can apply for 12AB registration** as long as:
* Your trust is **set up for charitable or educational purposes**.
* Training for **specific medical professionals (e.g., bariatric or AWR surgeons)** can fall under **education** as per **Section 2(15)** of the Income Tax Act.
> ❗ **No need to modify your trust deed** if it already mentions medical/educational training and not-for-profit purpose.
---
## ✅ **2. Why You Must Apply for 12AB Registration (Not Rely on 10(23C)(iiiad)):**
* **10(23C)(iiiad)** applies only if **annual receipts < ₹1 crore** (now ₹5 crore from A.Y. 2022–23).
* You’ve **exceeded ₹1 crore**, so you **do NOT qualify** under 10(23C)(iiiad) anymore.
* You **must get registered under Section 12AB** to claim income exemption under Section 11.
---
## 📄 **3. FCRA Registration – When and Why Required**
You mentioned **receiving foreign funds**. So:
### ✅ **Yes, FCRA registration is mandatory** if:
* You receive **foreign contributions** (from foreign individuals, companies, or NGOs).
* Even if the fund was for training, accommodation, or registration — if it’s **foreign-sourced**, FCRA applies.
### 📌 **FCRA Registration Requirements:**
* Trust must be at least **3 years old**
* Spent **at least ₹15 lakhs** in last 3 years on core activities
### Documents Needed:
1. Copy of Trust Deed
2. PAN of Trust
3. Registration under 12AB
4. Details of governing body/trustees
5. Bank account opened **exclusively for FCRA**
6. Financial statements of last 3 years
7. Activity Report
Alternate: You may apply for **prior permission** under FCRA if you’re not yet eligible for full registration.
---
## 📋 **4. Accounts & Records You Must Maintain**
As an accountant of the trust, here’s what you need to maintain:
### 📚 **Books & Documents:**
| Type | Description |
| ------------------------------------------------ | ----------------------------------------- |
| **Cash Book & Ledger** | Mandatory under Income Tax |
| **Donation/Receipt Registers** | Domestic & Foreign funds separately |
| **Expenditure Register** | For each program (training, events, etc.) |
| **Bank Statements** | For both regular and FCRA accounts |
| **Utilization Certificates** | Especially for grants/donations |
| **Receipts for Registration/Accommodation Fees** | Include GST breakdown if applicable |
| **Fixed Asset Register** | For all capital items |
| **TDS records** | If salaries/honorarium paid |
### Sections to keep in mind:
* **Section 11 & 12** – Income exemption rules
* **Section 12AB** – Registration for exemption
* **FCRA Act, 2010** – Foreign contribution rules
* **GST Act** – Supply of service (if applicable)
---
## 💸 **5. GST – Should You File Returns?**
Yes. If you have a **GST registration**, you **must file returns**, even **NIL returns**.
### ❗ Important Clarification:
If you're collecting **registration fees**, this may be considered **supply of service**, not a donation — and **GST may be applicable**.
### Cases Where GST Applies:
* If training is **not free** and there’s a **commercial element**
* If you charge for **accommodation + registration** as a package
* If services are not strictly charitable or educational under GST law
You need to:
* File **GSTR-1 and GSTR-3B** monthly/quarterly
* Pay **IGST** if recipient is outside India and services qualify as "export"
If you believe **GST shouldn't apply**, consult a GST expert and possibly apply for **cancellation of GST registration** if activities are fully exempt.
---
## 📌 Final Checklist:
| Task | Status |
| ------------------------ | ---------------------------------------- |
| Modify trust deed? | ❌ Not needed (if training is in objects) |
| Apply for 12AB | ✅ Yes, immediately |
| Apply for FCRA | ✅ If receiving foreign funds |
| File ITR-7 for 2016–17? | ⚠️ Not possible now; focus on current |
| Maintain books/accounts? | ✅ Mandatory |
| GST returns filing? | ✅ Yes, even if NIL |
---
Would you like templates for:
* A **Chart of Accounts** for a trust?
* **FCRA application checklist**?
* **GST exemption self-declaration letter** (if eligible)?
Let me know what you'd like help with next.
Let’s clarify everything in order so you can ensure **full legal compliance** and avoid penalties.
---
## ✅ **1. Can You Apply for 12A (Now 12AB) With Your Current Deed Clause?**
**Yes**, you **can apply for 12AB registration** as long as:
* Your trust is **set up for charitable or educational purposes**.
* Training for **specific medical professionals (e.g., bariatric or AWR surgeons)** can fall under **education** as per **Section 2(15)** of the Income Tax Act.
> ❗ **No need to modify your trust deed** if it already mentions medical/educational training and not-for-profit purpose.
---
## ✅ **2. Why You Must Apply for 12AB Registration (Not Rely on 10(23C)(iiiad)):**
* **10(23C)(iiiad)** applies only if **annual receipts < ₹1 crore** (now ₹5 crore from A.Y. 2022–23).
* You’ve **exceeded ₹1 crore**, so you **do NOT qualify** under 10(23C)(iiiad) anymore.
* You **must get registered under Section 12AB** to claim income exemption under Section 11.
---
## 📄 **3. FCRA Registration – When and Why Required**
You mentioned **receiving foreign funds**. So:
### ✅ **Yes, FCRA registration is mandatory** if:
* You receive **foreign contributions** (from foreign individuals, companies, or NGOs).
* Even if the fund was for training, accommodation, or registration — if it’s **foreign-sourced**, FCRA applies.
### 📌 **FCRA Registration Requirements:**
* Trust must be at least **3 years old**
* Spent **at least ₹15 lakhs** in last 3 years on core activities
### Documents Needed:
1. Copy of Trust Deed
2. PAN of Trust
3. Registration under 12AB
4. Details of governing body/trustees
5. Bank account opened **exclusively for FCRA**
6. Financial statements of last 3 years
7. Activity Report
Alternate: You may apply for **prior permission** under FCRA if you’re not yet eligible for full registration.
---
## 📋 **4. Accounts & Records You Must Maintain**
As an accountant of the trust, here’s what you need to maintain:
### 📚 **Books & Documents:**
| Type | Description |
| ------------------------------------------------ | ----------------------------------------- |
| **Cash Book & Ledger** | Mandatory under Income Tax |
| **Donation/Receipt Registers** | Domestic & Foreign funds separately |
| **Expenditure Register** | For each program (training, events, etc.) |
| **Bank Statements** | For both regular and FCRA accounts |
| **Utilization Certificates** | Especially for grants/donations |
| **Receipts for Registration/Accommodation Fees** | Include GST breakdown if applicable |
| **Fixed Asset Register** | For all capital items |
| **TDS records** | If salaries/honorarium paid |
### Sections to keep in mind:
* **Section 11 & 12** – Income exemption rules
* **Section 12AB** – Registration for exemption
* **FCRA Act, 2010** – Foreign contribution rules
* **GST Act** – Supply of service (if applicable)
---
## 💸 **5. GST – Should You File Returns?**
Yes. If you have a **GST registration**, you **must file returns**, even **NIL returns**.
### ❗ Important Clarification:
If you're collecting **registration fees**, this may be considered **supply of service**, not a donation — and **GST may be applicable**.
### Cases Where GST Applies:
* If training is **not free** and there’s a **commercial element**
* If you charge for **accommodation + registration** as a package
* If services are not strictly charitable or educational under GST law
You need to:
* File **GSTR-1 and GSTR-3B** monthly/quarterly
* Pay **IGST** if recipient is outside India and services qualify as "export"
If you believe **GST shouldn't apply**, consult a GST expert and possibly apply for **cancellation of GST registration** if activities are fully exempt.
---
## 📌 Final Checklist:
| Task | Status |
| ------------------------ | ---------------------------------------- |
| Modify trust deed? | ❌ Not needed (if training is in objects) |
| Apply for 12AB | ✅ Yes, immediately |
| Apply for FCRA | ✅ If receiving foreign funds |
| File ITR-7 for 2016–17? | ⚠️ Not possible now; focus on current |
| Maintain books/accounts? | ✅ Mandatory |
| GST returns filing? | ✅ Yes, even if NIL |
---
Would you like templates for:
* A **Chart of Accounts** for a trust?
* **FCRA application checklist**?
* **GST exemption self-declaration letter** (if eligible)?
Let me know what you'd like help with next.
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