Dear friends, please guide me in the following its really urgent:
The case is as under;
Say there is a registered trust having 80G certificate, now this trust want to purchase assets but as there is many problems in after words selling that property, so decided to create company for buying assets but the problem is that fund given by donor is to trust for buying property now how trust can enter in this transaction of buying property.
So, main point is as under
fund given by donor is to trust for buying property.
Now that property purchase agreement is done by company with builder.
now my question is i want to rotate fund from trust to company for buying that property.
so guide me whether this is possible and if yes then how and if not than suggest me in the matter.
complete accounting entries. etc please any further details required than please let me know
Thanks.
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Accounting problem real use of mind
What problems will the trust face for selling the property.
according to me the transaction is clear one. the donor is giving the amount directly to the trust for the purpose of purchasing/creating the asset. the trust can also claim the same capital expenditure for the purpose of application of 85% of the income provided all the conditions for claiming the exemption are being satisfied.
Let me make querrt more clear..
1) Peson Donate the money to trust (its a donation)
2) Now trust wnat to give to donor on trust's own wish right to stay to donor in bunglow at say xyz place.
3) Now that bunglow not want to purchse in name of trust but for that company created.
4) company is not having fund for purchasing bunglow's now here donation which is received by the trust is want to use
5) now the real problem comes that how fund transfer from trust to company
Please guide in detail considering all rules and regulations of trust act, IT Act etc.
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