For Charitable trust 12AA
Query (Issue) Started By: – Sanjay Chaturvedi Dated:- 16-4-2018 Last Reply Date:- 28-9-2018 Goods and Services Tax – GST
Got 7 Replies
GST
Our association is exempted under 12AA we are doctors organize conference for advancement of knowledge. which is covered under B and C below.
(advancement of educational programmes or skill development relating to:
(A) abandoned, orphaned or homeless children;
(B) physically or mentally abused and traumatized persons;
(C) prisoners; or
(D) persons over the age of 65 years residing in a rural area;)
We collect Money for organizing such educational activity as follows –
1) Registration Fees from Doctors
2) Unrestricted Educational Grant from Pharma and Surgical Companies in lieu of providing Space to provide knowledge to the Doctors about their recently launched products.
3) Accompanied person Registration fees
We spent these collection on
1) Venue Arrangement
2) Dinner/Lunch and other activities incl
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the term “charitable activities' which has been defined in the notification as under “charitable activities” means activities relating to –
(i) public health by way of, –
(A) care or counseling of
(I) terminally ill persons or persons with severe physical or mental disability;
(II) persons afflicted with HIV or AIDS;
(III) persons addicted to a dependence- forming substance such as narcotics drugs or alcohol; or
(B) public awareness of preventive health, family planning or prevention of HIV infection;
(ii) advancement of religion, spirituality or yoga;
(iii) advancement of educational programmes or skill development relating to, –
(A) abandoned, orphaned or homeless children;
(B) physically or mentally abused and traumatized persons;
(C) prisoners; or
(D) persons over the age of 65 years residing in a rural area;
(iv) preservation of environment including watershed, forests and wildlife.
This notification makes the exemption to charitable trusts available fo
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,
I concur with the views of the experts. However, you must go through the following circular issued by CBEC:-
GST on Charitable and Religious Trusts
Reply By Sanjay Chaturvedi:
The Reply:
Dear Sir, (Mr. ALKESH JANI)
As I understand that you are not clear about our activity – that I again clarify
1) We are Association of Doctors
2) We are exempt under 12AA
3) We have our annual conference where we discuss and enhance our knowledge – which not limited to physically or mentally abused and traumatized persons; persons over the age of 65 years residing in a rural area but cover these topics too, which are covered in the definition.
Now we receive money from Doctors – members and non members – as Registration fees for covering partial expenditure
We receive unrestricted educational grant from Companies which in turn provides education in the pre defined areas.
We spent on Hotels, for venue and Food
on transportation of delegates
which activity we must charge with GST and which
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are prone to Audit by the department. The terms and conditions of agreement with pharma cos. are very crucial in this aspect.
Reply By Tushar Barad:
The Reply:
We have received financial assistance request from UNRESTRICTED EDUCATION GRANT to support educational preconference workshop organized by XXXX Medical Center Trust hospital which is registered since inception in 2012 with both CIT(Exemptions) Kolkata and CCIT(Exemptions) New Delhi.
They have tax exemption under section 80G as per Income Tax website.
Do they also have to be registered as Charitable Trust Section 12AA?.. as per the question asked above?
We are private company supporting them for carrying out the educational activity, and we are not renting any space, booth or hiring any immovable property from them. In such case : simple agreement as per template provided here : http://www.ebap.org/images/files/4-Template_contract_Unrestricted_Grant_Agreement_and_equipment_LEE.docx …is sufficient for tax compliance?
Do we
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