vijay singla (learner) (340 Points)
23 April 2010dear friends , some doctors want to create a trust . for which donations will be received from the pharmaceutical companies and others. such donation is for treatment of poor patients. pls let me know the document required for creation of trust and who will sign these documents. complete procedure to create a trust. when tax audit will be applicable to it.
vishnupriya
(CA Final)
(1418 Points)
Replied 23 April 2010
Please go through Sec 12A of Income tax act
Section 12A: Registration of Trust:
Every trust or Institute must apply to CIT for registration u/s.12A in a prescribed form i.e. Form No. 10A within a period of 1 year from date of creation of trust or establishment of institution, as the case may be however delay can be condoned by CIT. However, no such time limit shall apply in case if an application for registration is made at any time on or after 01/06/2007.
Section 12AA: Procedure for registration by CIT:
(1.) Once an application is received from the applicant trust in form no. 10A, CIT may call for further document or information from the applicant trust, in order to satisfy himself about the genuineness of the activities and objects of the trust. CIT may even make enquiries from outsiders for this purpose. If he is satisfied about the genuineness of the activities of the trust, then he shall pass an order in writing registering the trust. It he is not so satisfied then, he shall pass an order refusing to register. A copy of every such order must be forwarded to the concerned applicant assessee.
(2.) No such order of refusal shall be passed unless on opportunity of being heard was given to the concerned applicant trust. Every such order of CIT, refusing to grant registration is appealable directly to ITAT u/s. 253. Every such order of CIT whether granting registration or refusing to register shall be passed within 6 months from the end of the month in which application was received from the trust.
(3.) If no such order is passed by CIT within 6 months, then the registration will be deemed to have been granted by CIT.
The Books of Accounts of the trust must be audited if income of the trust, including corpus donation exceeds Rs. 1,60,000/- (before claiming exemption u/s.11)
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 24 April 2010
regards,
ratan
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