Under trust and it act

Gaurang Choksi (Querist) 04 October 2022 This query is : Resolved
1. An Indian Trust purchased Marble and send it to Foreign Trust as a Gift. Is there any Violation under Trust Act?
2. What is the jurisdiction of Indian Charitable Trust either within India or can donate outside India ?
3. Is there any violation under I.T.Act? Can Assessing Officer reject the expenses of Marble given as a Gift?

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This discussion clarifies whether an Indian Trust can gift assets, like marble, to a foreign trust without breaching the Indian Trust Act or Income Tax Act. It confirms that Indian trusts generally have the power to gift movable property to foreign entities, provided the trust deed allows it. The content also touches upon the jurisdiction of Indian charitable trusts and potential tax liabilities for individual beneficiaries.

kavksatyanarayana (Expert) 05 October 2022
A trust may give a gift to trust in a foreign also if the trustee has the power to do so.

Advocate Bhartesh goyal (Expert) 06 October 2022
There is no prohibition/restriction that Indian Trust can not donate/ gift movables to a Foreign Trust.

T. Kalaiselvan, Advocate (Expert) 07 October 2022
As per the Transfer of Property Act, a transfer in the name of gift implies that all the three rights of enjoyment, alienation and possession are transferred. Thus, the Trust has the absolute right to transfer the property unless the gift deed was made with an express condition barring the rightto transfer.
If a trust, estate, partnership, or corporation makes a gift, the individual beneficiaries, partners, or stockholders are considered donors and may be liable for the gift and GST taxes.

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