Ravi Bagaria (Manager Finance) (67 Points)
04 January 2012I'm a part of a charitable trust. We receive money as sponsorship from a lot of people and they deduct TDS on the same. However, we want to treat these amounts as donations. In terms of Receipt the people donot want a 80G receipt. They want a sponsorship invoice.
Should an Invoice be given for the same? We want to take these as donations and not sponsorship. There's no services being offered in return
CA Neil Ganatra
(Partner - Gautam Joshi & Co.)
(871 Points)
Replied 04 January 2012
sir, if you are not providing any service in return, how can you give invoice?
Ravi Bagaria
(Manager Finance)
(67 Points)
Replied 04 January 2012
We need to recognise these as donations and the donor wants to show these as sponsorship. We donot want to give an invoice. Only a letter acknowledging these receipt as sponsorship.
CA Neil Ganatra
(Partner - Gautam Joshi & Co.)
(871 Points)
Replied 04 January 2012
sir, does your trust publish any kind of soveniour or brochure or booklet or something like that? If yes then in that case you can publish that party's name as your esteem donor and can give letter accordingly showing it as sponsorship, sponsorship to complete the trust objectives...if no then trust should not give such letter but only receipt for such payment is received.
The contention of the payer is to claim 100% amount as expense of sponsorship. If they show it as donation then only 50% amount will be available as deduction. On remaining 50% that person has to pay tax. So definitely they will ask for sponsorship letter.
Ravi Bagaria
(Manager Finance)
(67 Points)
Replied 04 January 2012
Vineet Goyal
(Assistant Manager - Finance & Accounts)
(702 Points)
Replied 04 January 2012
If you are not providing any service in return, no need to give invoice. It should be like a donation to CRY.
CAclubindia
