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?

AI Summary

Charitable Trust Seeks Tax Benefits: Can It Register Under Section 12AA and File ITR 5 for Business? A trust formed in 2012 for charitable purposes, focusing on environmental preservation, provides various services such as campus maintenance, operating a community hall, day care, and a ladies club. It charges for these services, collects GST, and files GST returns, with a turnover exceeding one crore for 2017-18. The trust has not registered under section 12AA of the Income Tax Act, and TDS is deducted under section 194C. The query seeks advice on whether the trust can still register under section 12AA, obtain tax benefits if 85% of income is spent on objectives, and whether it should file ITR 5 as a business concern and undergo a tax audit. The response clarifies registration conditions under section 12A(1)(a) and the possibility of retroactive application of sections 11 and 12 benefits.