TaxTonic Session: Prismatic View on SC’s Charitable Institutions Judgment!

Episode Duration:
80 minutes

Episode Background:
'TaxTonic', a new 'subscriber only' thought leadership series, is Taxsutra's endeavour to consistently deliver top notch technical content to it's readers. The labyrinth of tax rulings on convoluted transactions keeps the world of taxation unpredictable and ever-evolving. This series will feature engrossing presentations, incisive analyses and a deep-dive by the tax experts on burning issues & controversies. So, gear up for a 'tonic' to chisel your tax mind and challenge your wit.

Speaker:
Mr. Sachit Jolly (DMD Advocates)

Moderator:
Mr. Sachin Sastakar (Chartered Accountant)

What shall the episode cover?
Oct 19, 2022 will go down in history as a fateful day for numerous charitable institutions across the country that have been enjoying tax exemption. The Supreme Court’s landmark judgment laid down law on tax exemptions for organisations providing services of General Public Utility to meet their charitable objective. SC comprehensively dealt with the Section 2(15) in the light of successive amendments thereto and with the Constitution Bench ruling in Surat Art Silk Cloth Manufacturers Association that propounded the 'predominant object' test. SC decisively discarded the principle of predominant test and paved the way for taxation of GPU activities subject to the statutory threshold.

In this episode of TaxTonic, Taxsutra presents an analysis of judgment that is life-altering for charitable organisations across the board since institutionalised charity in India has been synonymous to tax exemption. We present an all-encompassing discussion to foresee the implications of the judgment on the idea of charity. The proposed episode delves into:

1. Different exemption regimes
2. Dispute around fee charged as cost or nominal markup vis-à-vis substantial markup
3. Exemptions for statutory bodies as compared to private charitable trusts