Company is donating Rs.30000/-by cheque to a welfare organisation ( no proof of registration under Society Act ; no Income Tax PAN Card given) without any direct consideration. My views are :-
(a) Registration & PAN card - should be verified, as it could land in to anti-social activity.
(b)Quite akin to sponsorship scheme. Hence, on reverse charge mechanism, service tax is to be paid by donor company.
(c) It will not be covered under Sec.80G and Sec12A. No tax admissibility.
My views require support of reference to Act etc.
Please guide me.
Thanks in advance
22.03.2013
CAclubindia
