Public Charitable Trust
karunakumar
(Querist) 04 December 2009
This query is : Resolved
XYZ is a public charitable trust.It is run by sadhus who has dedicated their life for social cause and well being of society and spread of their religion..
The said trust runs schools at different states of India. It collects fee to the tune of Rs 1,00,000/- for proving all facilities to students( Boarding & Lodging).
It has excess of expenditure over income in the past 10 assesement years..to establish new branches the trust purchases land at different places.
the question lies where at what price the land should be brought into books of account.the stamp duty value is Rs 1,00,000/- where the price to be paid is Rs 10,00,000/-.
If the amount agreed is to be paid then out of what resources the trust should pay such amount...the trust receive donations voluntarily from general public and devotees.
Vineet
(Expert) 04 December 2009
As far as Income Tax is concerned, the expenditure on purchase of land shall be tretaed as laid out in furtherance of charitable purposes and hence deductible. Therefore it can be paid out of accumulated reserves as well as current receipts.
How does charitable purpose is linked with price of land.
Vineet
(Expert) 04 December 2009
The price which is being paid.
niranjan
(Expert) 04 December 2009
I do not think the trust should be involved in such type of evasion of stamp duty.
Raj Kumar Makkad
(Expert) 04 December 2009
Trust should generate more and more ways to collect money from general public and should spend within its reach.
