Tax ability of donation recd. by co. on behalf of trust

Dear All,

Please help me with above mentioned query.

Now, entity ABC is business entity whereas XYZ is a Public Trust (both comes under one single group).

Management has decided to fo for fundraising via ABC for XYZ.

If ABC collects funds for the said purpose and then transfers to Trust.

What will be the Income Tax applicability to ABC?

How to show the same in books of accounts?

Please assist!

 

Replies (1)
ABC can't do that because it wud be violation of the trust objects. trusts needs to collect the donation on its own. if ABC collects it then it wud be regarded as income of the co. in turn when it transfers it wud be required to be shown as loan receivable by ABC from trust

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