Re Trust Charitable Institution

[Madhavan iyengar]

Dear Sirs

A charitable Trust Regd with Income tax and having benefit of Sec 12AA and conducts Certain spiritual courses one of the Trustees a foreigner is also a instructor and conducts the courses However the Trust has taken a GST Regn as it discharges GST on Services like Accommodtaion / Food offerred to participants attending the courses

Queries

a) Is a Trustee Related party of the Trust and since trustees render the honorary services to the trust

b) If the Instructor Trustee is not paid any remuneration for services of instructor rendered by him to the Trust for course conducted is there any GST Implication

Experts please clarify

[Shilpi Jain]

If the trustee excercises control over the trust then he is a related party

[Madhavan iyengar]

ok thanks

If the Trustee is involved in advisory role and some trustees are involved in day to day working then how do we conclude can we say trustee who actively works for trust will be a related party pls elaborate word control

AI Summary

Related party status: trustee exercising control over a trust may be treated as related party affecting GST treatment. A charitable trust registered for income tax benefits conducts spiritual courses and holds GST registration for accommodation and food supplied to participants. Key issues are whether trustees rendering services are related parties for GST and whether an unpaid trustee instructor attracts GST; the recorded operative test states that if a trustee exercises control over the trust, he is a related party.