Taxability of Trust-Donation and Subsidy received - Professionals - Taxation - TIK Share
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Taxability of Trust-Donation and Subsidy received


SANJAY KUMAR GANNA

2014-04-25

A Goshala Trust received Govt Subsidy from Rajasthan Govt

How the Taxability will be applicable 

Some of Facts :

Donation Received Rs 4,00,000

Subsidy received Rs. 3,20,000

Total Expenditure for Maintenance Grass etc. 6,06,711

Please advice in which sections what will come and how to prepare Tax Audit Report

 

SANJAY KUMAR GANNA

2014-04-25

Is there any requirement to disclose Subsidy received from Govt in the Audit Report

Reply

Vedanta Deshika

2014-04-25

Subsidy granted for a specific purpose would be a capital reciept which is not taxable. Other Subsidies are in revenue nature , hence would be taxable.

Reply

Vedanta Deshika

2014-04-25

If its a capital subsidy, it has to be reported under Cluase 13(e) of the Form 3CD

Reply

SANJAY KUMAR GANNA

2014-04-25

How Form 3CD will be applicable for Trust

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