| Discussions Forum | ||||||||||
Home  Forum Income Tax This
|
||||||||||
| A Public Forum. Anyone can participate to share knowledge. |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| We acknowledge the contributions of Experts/ Authors. | ||||||||||
Submit new Issue / Query |
||||||||||
Commercial Activities by Trust registered u/s 12AB, Income Tax |
||||||||||
|
||||||||||
Commercial Activities by Trust registered u/s 12AB |
||||||||||
Dear sir/madam A trust registered u/s 12AB running an ayurvedic college and a teaching hospital under it. Teaching hospital gives services and also sells drugs to inpatients. Suppose Trust plans to opens a medical shop within the premises of college and to extend sale of drugs and other pharmaceutical products to outsiders. can a trust do that?? Posts / Replies Showing Replies 1 to 5 of 5 Records Page: 1
What are the main objects of the trust?
Pls note that the restriction on commercial activity being "charitable purpose" is only for the object being "the advancement of any other object of general public utility".
Main objective of Trust is Providing Education. It has 75 educational institutions.
If the main objective of the trust is imparting education, there is no restriction on commercial activity for falling under "charitable purpose". However, pls note the ratio laid down by Hon'ble SC in M/S NEW NOBLE EDUCATIONAL SOCIETY VERSUS THE CHIEF COMMISSIONER OF INCOME TAX 1 AND ANR. 2022 (10) TMI 855 - SUPREME COURT is also relevant.
A lot to be checked before deciding the query, in particular, the objects clause. Page: 1 |
||||||||||
.jpg)
