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INTRODUCTION
DEFINITIONS
Sec. 2(13): Public Trust : means an express or constructive Trust for either
public or charitable purpose or both and includes a temple, a math, a wakf,
church, synagogue, agiary or any other religious or charitable endowment
and a society formed either for religious or charitable purpose or both
and registered under the Societies Registration Act, 1860.
b. education
c. medical relief
e. the advancement of any other object of general public utility, but does
not include a purpose which relates exclusively to religious teaching or
worship
In order to be a public trust, it is not essential that the trust should benefit
the whole of mankind or all the persons living in a particular state or city. It
is said to be a public trust if it benefits a sufficiently large section of the
public as distinguished from specified individuals. Also if the beneficiaries of
the trust are uncertain or fluctuating, then the fact that the beneficiaries
belong to a certain religion/caste does not make any difference.
K.S.V.N.S.KAMESWARA RAO & ASSOCIATES
COMPANY SECRETARIES
REGISTRATION OF TRUST
a. covering letter
e. consent letter signed by the remaining trustees and stating that they
hereby allow the applicant trustee to represent on their behalf and
complete all registration formalities and obtain the certificate of
registration
Where any change occurs in any of the entries recorded in Schedule I, the
same has to be intimated to Charity Commissioner within 90 days of
occurrence of change in Form "Schedule III’" along with relevant
documentary evidence. Intimation of change relating to any immovable
property has to be given in Form ‘Schedule IIIA’ (change report) Affix court
fees stamp of Rs. 100.
A public trust (other than one which is exempt) having gross annual income
(from all sources) exceeding Rs. 25,000 has to pay contribution to the
Public Trust Administration Fund @2%. Gross annual income excludes
corpus donations. Contribution is payable @2% on the gross annual income
after making the deductions prescribed in Rule 32 which are stated
hereunder:
Deductions
A public trust can invest its funds in any of the following modes:
Trustee of every public religious trust having annual income exceeding Rs.
5000 and Rs. 10000 in case of other trusts has to prepare and submit the
budget to the Charity Commissioner, one month before the commencement
of the accounting year. The budget has to be prepared as per format given
in Schedule VIIA.
K.S.V.N.S.KAMESWARA RAO & ASSOCIATES
COMPANY SECRETARIES
ACCOUNTS AND AUDIT (SECs. 32 & 33, 34)
Sometimes, a trust created for certain specific objects fails due to unforeseen
circumstances. In such cases the doctrine of cy pres comes into play. The
meaning of the phrase ‘cy pres’ is as near as possible. i.e. the trust can
change its objects and the funds can be used for a similar other purpose. For
this an application has to be made to the Charity Commissioner who may in
turn further require the trust to take sanction from the Court.
AMALGAMATION OF TRUSTS
To rescue financially weak trusts sec. 50A (2) of the BPT Act lays down the
provisions for legally amalgamating two or more trusts with similar objects.
All trusts receiving foreign contribution (i.e., any article, currency whether
Indian or foreign, foreign securities received from a foreign source) have to
register with the Central Govt. under FCRA. Moneys received in Indian
currency from companies in India that are foreign controlled are also
considered as foreign contributions. The Government is to be intimated
in Form FC-3 within 30 days of the receipt of foreign contribution. Separate
accounts have to be maintained of the foreign contribution received &
utilised. Every account so maintained shall be audited by C.A. along with
Balance sheet and statement of receipts and payments. It has to be
K.S.V.N.S.KAMESWARA RAO & ASSOCIATES
COMPANY SECRETARIES
furnished to the Secretary, GOI, Ministry of Home Affairs, New Delhi, within
60 days of closure of the year.