The order noted that the state associations received a share of the media rights as well as ticket revenue from organising matches.
NEW DELHI: Ruling against tax exemption for private trusts, organisations or associations set up for charity but imposing high charges, the Supreme Court on Wednesday put the agencies through a test to determine their eligibility or otherwise. For instance, it observed that housing or industrial development agencies may resemble trade, commercial, or business activities but they should be exempted as their objects are essential for advancement of public purposes.
Similarly, revenue earned by statutory agencies such as ICAI, providing regulatory and professional service to chartered accountants, are not seen as commercial receipts. Trade bodies such as Apparel Export Promotion Council (AEPC) may be exempted, but revenue earned from additional services such as skill development or consulting would be considered as business.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
