Converting charitable trust into section 8 company

Co Act 2013 5974 views 1 replies

Dear Sir pls help if a charitable trust is registered under MP Pulbic Trust Act as on September 2011. Since its been old one now and old continuity better for schemes and funds I want the same to continue as Section 8. 

Please reply to the following queries. 

  • What will be the process to convert the existing Trust into Section 8 company ?
  • Will the continuity of entity be held in eyes of Income Tax even after conversion. Why and why not ?
  • Same PAN will work ?
  • Do old audits when registered as trust will support for grant applications as re-registered Section 8 ?

 

Replies (1)

There is no provision for conversion of  a trust into a company.  You will have to register Section 8 company and then perhaps transfer assets of the trust to  the company by agreement.  You may consult your advisor for income tax and stamp duty implications.

 


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