One of my client (a private limited compnay) has created a gratuity fund - taken approval from the Income tax department, created a trust and paying premium to LIC. The Company opened a bank account in the name of Trust (The resolution for the same was given to bank). Trustees are director of the company. Now, my question is what type of secretarial records are to be maintained for meetings or any other business of the trust? what about books and returns as per IT Act?
04 August 2010
The law does not provide that secretarial records have to be maintained. However, it would be prudent to hold 4 quarterly meetings of the Board of Trustees and record the minutes.
The books i.e, balance sheet of the Gratutiy Fund has to be maintained seperately and audited by auditors for internal records. If at any time in the future, the IT Department requires such balance sheets, the Company should be in a position to provide them without hassle.
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