Sponsered trust

Querist : Anonymous (Querist) 17 September 2011 This query is : Resolved

A company opens a trust. Expenses of such trust is borne by the company. Such trust is meant for promoting the industry , of which such company is a part.

Can such trust apply for 12A/80G. If it gets it anyway, does the expenses borne by company of such trust suddenly reduce to 50% allowable? Also is payment to such trust by company is revenue expenditure?

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Shailesh Kr. Shah (Expert) 18 September 2011
Q.does the expenses borne by company of such trust suddenly reduce to 50% allowable?
Ans. No, it can't, upto sanction of 12A/80G.

Q.Also is payment to such trust by company is revenue expenditure?
Ans. Yes, provided that Clause of such payment should be in the 'Object' of the company.

Guest (Expert) 18 September 2011
I endorse the views of Shri Shailesh Kr. Shah.

Shastri J.K. (Expert) 18 September 2011
I agree with Experts.

prabhakar singh (Expert) 18 September 2011
Expert : Shailesh Kr. Shah has well categorically clarified your doubts which is self sufficient and demands no add.