I observe that any commercial activity of a trust should not be incidental to advancement of any other object of general public utility and if so the aggregate receipts from such activity should not exceed 20% of the total receipts. Now we have a trust formed for advancement of education with is a charitable object. We print anicient literature and sell the same to youth to improve personality development and other virtues. Please clarify whether this 20% limit applies here. I feel that it is not applicable as the main charitable activity of the trust is develeopment of education and spreading the greatness of our anicient culture.Since the Printing and publishing activity and sale of books is incidental to the main charitable activity and not connected with advancement of any other object of public utility (last object) the second proviso will not apply and the receipts from trading activity can exceed 20% of the gross receipts(Donations)
Please clarify me in this regard
As the second proviso to section 2(15) talks about any other object of general public utility only, I feel it does not apply to the objects for charitable purpose stated specifically in the definition.
Thanking You
Udayakishore
CAclubindia
