1. Which accounting standards are applicable on charitable trust?
2. Whether depreciation and provision for tax will be charged in P&L a/c of charitable trust or not?
Menu
Charitable trust-accounting
Replies (2)
If the charitable trust is established wholly & exclusively for the purpose of charity & not even a single part of its activity is carried on for business purposes then the AS's are N/a to the charitable trust. However if it proved that even if a single objects of the trust are carried on for business then the AS's would ebcome applicable.
Trust's income is exempt from the payment of I-T, so there is no need of making provision for tax. Depreciation shud be charged to P&L at the rates specified as per the I-T Act.
Exclusive Trust (100% for charity)- If none of the AS are applicable on it then what are the rules for accounting in trust.
Non exclusive Trust - As per the trust definition an entity has to invest 85% of the income into charitable purpose to maintain the charitable trust status. Which means 15% of the income can be invested into other business purpose. In that case will that trust be considered under non exclusive trust ( all AS applicable) or not?
Recent Topics :
- Non filing of MGT-14 for MD appointment
- HUF AFFIDAVIT vs HUF DEED - REQUIREMENTS & STA
- Free Pre-Filing Tool to Match GSTR-3B vs GSTR-2B (
- MR AASHOK KUMAR SHARMA
- NIC codes for FIRMS registration of entity
- Register on Income Tax as CA
- Deduction In Employee Provident Fund
- This is a gift for all Chartered Accountants and P
- NRI, ITR-2 FY 2025-26: AIS Part B2 (SFT) shows hig
- Wallet query for GST.
Related Topics :
CAclubindia
