A private company wants to organize a show for its clients. and utilize receipts for charity purpose. is there any restriction regarding max. amount which it can donote in charity? or any other restrictions? Turnover 60,00,000 approx.
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 02 April 2012
A pvt co. can contribute any amount for charitable purpose, provided it is not a subsidiary of a co.(which is not a pvt co.)....
If it is a subsy of a co.(vch is nt a pvt co.), den the following provsion of section 293 gets attracted:
In that case, it can contribute to the maximum of greatesr of the below mentioned limits:
a)Rs. 50000
b) 5% of avg Net profits during preceeding three years (computed in accordance wid sec. 349 & 350)
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