Trust- ITR Form Applicability Reg

[venkatachalapathy janani]

My client is a trust formed for charitable purpose (formed in 2012) main objective being preserving the natural environment of the campus.
Services provided are
1. Cleaning and maintaining the campus
2. Running a community hall
3. Running a Kids Day Care
4. Running a ladies Club
For all the above services, billing is made by the trust. GST is also being collected and the GST returns are also filed. For the year 17-18 turnover crossed 1 crore. There are no voluntary contributions received.
However, the trust has not registered under section 12AA of the Income Tax Act so far.. On the billings, TDS is deducted as per 194C.
My doubt is can we register the trust under section 12AA of the Income Tax Act?
Even if we register, can we get the tax benefit if 85% of the amount received is spent towards the objectives(Since they are doing business).
Do we have to consider this as a business concern and prepare Financials and file in ITR 5 showing business profits?
Is tax audit applicable for this trust?

[DR.MARIAPPAN GOVINDARAJAN]

Section 12A(1)(a) provides that the trust should be registered within one year of the creation of trust. The proviso to this section provides that if it is registered after the expired the provisions of section 11 and 12 of the Act will be applicable from the date of the creation of the trust or the establishment of the institution if the Principal Commissioner or Commissioner] is, for reasons to be recorded in writing, satisfied that the person in receipt of the income was prevented from making the application before the expiry of the period aforesaid for sufficient reasons.

If the Principal Commissioner or Commissioner] is not so satisfiedfrom the 1st day of the financial year in which the application is made

AI Summary

Trust registration under section 12A: late registration may be allowed if commissioner records sufficient reasons, affecting applicability. Registration must ordinarily occur within one year of a trust's creation. A proviso allows retrospective application of income provisions if the Principal Commissioner or Commissioner, for reasons recorded in writing, is satisfied that the applicant was prevented from applying within that period; if not satisfied, the provisions apply from the first day of the financial year in which the application is made.