1. Which accounting standards are applicable on charitable trust?
2. Whether depreciation and provision for tax will be charged in P&L a/c of charitable trust or not?
tarun agrawal (MBA) (26 Points)
01 October 20121. Which accounting standards are applicable on charitable trust?
2. Whether depreciation and provision for tax will be charged in P&L a/c of charitable trust or not?
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 02 October 2012
If the charitable trust is established wholly & exclusively for the purpose of charity & not even a single part of its activity is carried on for business purposes then the AS's are N/a to the charitable trust. However if it proved that even if a single objects of the trust are carried on for business then the AS's would ebcome applicable.
Trust's income is exempt from the payment of I-T, so there is no need of making provision for tax. Depreciation shud be charged to P&L at the rates specified as per the I-T Act.
tarun agrawal
(MBA)
(26 Points)
Replied 02 October 2012
Exclusive Trust (100% for charity)- If none of the AS are applicable on it then what are the rules for accounting in trust.
Non exclusive Trust - As per the trust definition an entity has to invest 85% of the income into charitable purpose to maintain the charitable trust status. Which means 15% of the income can be invested into other business purpose. In that case will that trust be considered under non exclusive trust ( all AS applicable) or not?
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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