18 October 2008
In Form 10 B Audit report for Trusts or societies enjoying exemptions u/s 12A an auditor is required to report on certain matter whether benefit to persons mention in section 13(3)of the Income Tax Act
I have come across a problem. Suppose trust is running an old age home. Construction of old age home is all complete. That founder is there administrating the construction. So he is staying in the outhouse of the old age home constructed without rent to monitor the construction activites and to look after the home. He is having his food at the canteen.
So two benefits are enjoyed by the founder
would it attrat 13(2)(b)and (d)
These are required to be provided if the trust employes any other outsider
My question is do we need to report on these matter that means trust's exemption would be forfeited
CAclubindia
