Page 8 - Ch8_ EXEMPTION

CCP 08.03.05.00
Anand Trust, Kolkata is registered under section 12AA of the Income Tax Act, 1961. It has provided

following particulars relating to the activities carried out by it for the month of March, 20XX:-
Particulars Amount ₹
Donation received against display of name of a city-based school inannual religious book 5,00,000
published by the Trust

Receipts from sale of food in Anand food court, located in the Trust premises 2,00,000
Refundable deposit of ₹ 2,00,000 and annual fees of ₹ 1,00,000 received from restaurants 3,00,000
(located in West Bengal) using brand name and logo of Anand Food Court
Donation received for Pooja organized in Trust premises on occasion of 'Shivratri' 1,00,000

Receipts from Skill Development Program for Senior Citizens (aged more than 65 years) 4,00,000
residing in Kolkata
Amount received for activities relating to preservation of Tigers in Sunderbans, West Bengal 3,00,000
Letting out of precincts of a religious place owned by Trust in Kolkata (Rent ₹ 10,000 per day) 2,00,000

From given information, you are required to calculate the value of taxable supply. [CA IPC Nov
20 Exam]
Answer:-
Computation of value of taxable supply of Anand Trust for the month of March, 20XX:-

Particulars ₹ Reason

Donation received for publishing the 5,00,000 Taxable, as it is a non-charitable activity, service

name of a school in annual religious provided by Trust is not eligible for exemption & also,

publication of Trust publishing name of school is giving publicity/
advertisement to it.
Receipts from sale of food in food 2,00,000 Taxable, as it is a non-charitable activity, service
court in the premises of Trust provided by Trust is not eligible for exemption from
GST.

Annual fees received from 1,00,000 Taxable, as it is a non-charitable activity, service
restaurants for use of brand name provided by Trust is not eligible for exemption.
and logo of food court However, deposit being refundable in nature cannot
be construed as consideration.

Note: It is assumed that refundable deposit of ₹
2,00,000 has not affected, in any manner, the
consideration charged for use of brand name and logo
of the food court.

Donation received for pooja Nil Exempt because services of conduct of a religious
organized in Trust premises on ceremony are exempt from GST.
occasion of 'Shivratri’
Receipts from skill development 4,00,000 Taxable, as Skill development program conducted by

program for senior citizens (aged Trust for persons over the age of 65 years is not a
more than 65 years) residing in charitable activity since such persons are not
Kolkata residing in rural area, but in an urban area
(Kolkata). Thus, not eligible for exemption.

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