Taxation of school trust

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2013 1.I have audited one of the school trust where net income of the trust is more than 15% of school fees recd. I have query for how to show income in 10B form. Whether gross fee recd. as income and expenses are application of funds. Or net school profit as income and of that 15 % should be calculated or what?
please guide me for feeling form 10B.

2.That school fees are more than 1 crore whether any regn.reqd. under the any act.

CA Parul Saxena

CA Parul Saxena (Expert)
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24 September 2013 In the Row 1 mention the exact expenditure incurred.
In the Row 2 mention the amount set apart to be spent in subsequent years.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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24 September 2013 1. total fees received is the income. 15% is applied on that figure.

2. Parul has already answered how to fill 10B.

3. I hope the trust has 12A registration. If yes, then no other registration is required. Registration under 80G is optional.

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deepak K Gujrati

deepak K Gujrati (Expert)
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24 September 2013 From your query it is not clear whether your school is having registration u/s 12A. Assuming it to be registered, In Form 10 B total utilisation of fund will be equal to total expenses as per income and expenditure a/c plus any capital expenditure made. 15% is calculated on gross receipts.
It is better to get regisration u/s 10(23)(c) and claim full exemption.