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Additional reporting required to be done by the Auditors of Trust in Maharashtra
Now, an additional reporting is required to be done by the Auditors of Trust in Maharashtra. Recently, Maharashtra Law and Judiciary Department has issued a Notification Dated 15/05/2019 which has floated Bombay Public Trust ( Second Amendment ) Rules – 2019, to introduce additional reporting by the Auditors of the Trust in Form IX-D. [Rules are re-produced here under)
As a result, In addition to the reporting by Auditor u/s 33, 34 & Form IX-C, reporting in IX-D will be required by auditor. Additional reporting introduced in Form IX-D is an additional painful compliance expected from Auditor. However, it is aimed at curbing the malpractices and use of trust as a medium of money laundering. Rules are framed to ensure digitalization filing of the data with the charity commissioner office. Now, the Audit Report of the Charitable Trusts has to be uploaded online only.
It is believed that the exercise as undertaken by Maharashtra Government is likely to be initiated by other State Government and it will be the part of data mining exercise to be undertaken by the regulator.
Pursuant to above referred rule, quoting of Registration No. u/s 12AA of the Trust in their Audit Report is mandatory.
The additional reporting is now mandatory alongwith all the Audit Reports being filed with the Office of the Charity Commissioner online. The Auditors are required to take note of the same and plan the Audit work accordingly.
The copy of the notification is as under:
Bombay Public Trusts (Second Amendment) Rules, 2019 as notified vide notification No. BPT-1117/C.R. 59/Desk XV dated 15th May 2019.
LAW AND JUDICIARY DEPARTMENT
Madam Cama Marg, Hutatma Rajguru Chowk,
Mantralaya, Mumbai 400 032, dated the 15th May 2019
MAHARASHTRA PUBLIC TRUSTS ACT.
No. BPT-1117/C.R. 59/Desk XV.—In exercise of the powers conferred by section 84 read with section 22 of the Maharashtra Public Trusts Act (XXIX of 1950), the Government of Maharashtra hereby makes the following rules further to amend the Bombay Public Trusts Rules, 1951, the same having been previously published as required by sub-section (3) of section 84 of the said Act, as follows, namely :—
- These rules may be called the Bombay Public Trusts (Second Amendment) Rules, 2019.
- In rule 1 of the Bombay Public Trusts Rules, 1951 (hereinafter referred to as “the principal Rules”), in sub-rule (1) i.e., in the short title and throughout the principal Rules, for the words and figures “Bombay Public Trusts Rules, 1951” the words “Maharashtra Public Trust Rules” shall be substituted.
- After rule 5 of the principal Rules, the following rule shall be inserted, namely :—
“5A. Rules for Digitization of Trusts Records.—(1) All the existing trusts records in all the offices under the control of the Charity Commissioner, Maharashtra State shall be converted into electronic record.
(2) Entries in the Schedule-I of the record of every trust registered after the commencement of the Bombay Public Trusts (Second Amendment) Rules, 2019 shall be made electronically within seven days of its registration under the Maharashtra Public Trusts Act (XXIX of 1950) and the concerned Assistant or Deputy Charity Commissioner shall be responsible for making such compliance.
(3) Entries of Schedule-I of the electronic record of the trusts which have been registered before the commencement of these rules shall be made with the help of staff or outsourced service provider by the Assistant or Deputy Charity Commissioner as expeditiously as possible. The Charity Commissioner shall declare the procedure for taking such electronic record entries of Schedule-I on the Official Website of the Charity Commissioner and whenever necessary make modifications in the said procedure and shall publish the same on the said Official Website.
(4) Trustees may submit change reports, applications for registration of trusts under the Maharashtra Public Trusts Act, 1950 (XXIX of 1950) and applications for seeking permission of collecting donations under section 41 C of the said Act online on the Official Website of the Charity Commissioner. The procedure shall be specified for taking cognizance of such online applications and may also make necessary modifications in the said procedure. The procedure and the modification thereof shall be published on the Official Website of the Charity Commissioner.
(5) The scheme of entering of data and preserving records of the trusts in electronic form on the Official Website of the Charity Commissioner as well of accepting the said online applications or proposals shall be implemented by the concerned Assistant or Deputy Charity Commissioner under whose jurisdiction the public trusts are situated and with the help of the employees and officers under the control of the Assistant or the Deputy Charity Commissioner. Employees or officers found guilty of non-implementing such scheme shall be liable for the disciplinary action, as per the rules applicable therefor.”.
- In rule 7A of the principal Rules, in sub-rule (3), in clause (b), after the words “notice on the ‘Notice Board’ of his office” the words “or by publication of such notice on the Official Website of the Charity Commissioner” shall be inserted.
- In rule 13 of the principal Rules, after sub-rule (2), the following rules shall be inserted, namely : —
“(2A) Change Report in the form of Schedule-III shall be accompanied by the following documents,—
(a) Copy of notice or agenda of the meeting of the trustees for the proposed change.
(b) Copy of resolution passed by the board of trustees proposing the change.
(c) In case of sole trustee, the letter of addition or deletion signed by the said sole trustee.
(d) Consent letters of incoming trustees with their details (e. full address, identity proof, mobile number, phone number, email address etc).
(e) Affidavit as contemplated in sub-rule (4) of rule 6 of the outgoing trustees:
Provided that, the Deputy or Assistant Charity Commissioner may exempt filing of such affidavit in an appropriate case such as when the trustee, despite due diligence, is not found.
(f) Trust Deed, constitution and Scheme of the Trust.
(g) Any other document deemed necessary by the Charity Commissioner, as declared by order published in the Official Gazette and on the Official Website of the Charity Commissioner.
(2B) Memorandum of Change in the form of Schedule-IIIA shall be accompanied by the copy of registered Conveyance Deed and any other relevant documents transferring property to the trust or by the trust.”.
- In rule 19 of the principal Rules, after sub-rule (2), the following sub-rule shall be inserted, namely :—
“(2A) The auditor shall also submit additional information pertaining to the income tax returns of the trust in the form given in Schedule IX-D.”.
- In rule 21 of the principal Rules, in sub-rule (1),—
(a) for the words “shall forward” the words “shall submit” shall be substituted;
(b) after the words “fortnight of the audit” the words, “online on the Official Website of the Charity Commissioner” shall be inserted.
- After Rule 25AA of the principal Rules, the following rule shall be inserted, namely :—
“25AAA. Procedure for execution of the order passed under section 41F.—(1) Every application to the Charity Commissioner under sub-section (1) of section 41 F shall set out concisely, the material facts about the breach of the order under any of the sections mentioned in Chapter VI of the Act and shall contain, inter alia, the following particulars, that is to say:—
(a) the name, occupation and address of the applicant and the person who has committed breach of the order,
(b) the name and description and number of the trust in respect of which the breach of order has been committed,
(c) the nature of the applicant’s interest in the trust,
(d) the cause of action and the nature of relief sought for in the application,
(e) the list of documents relied on.
(2) The application shall be verified in the manner provided in sub-rule (3).
(3) There shall be maintained in the office of the Charity Commissioner, a register of applications made to the Charity Commissioner under section 41 F in the form given in Schedule X-AC.
(4) The Charity Commissioner shall then issue notice in the form given in Schedule X-AD to the person who is alleged to have committed breach of the order and upon hearing him, pass appropriate orders regarding attachment of his property and/or his arrest and detention in civil prison.
(5) The Charity Commissioner may issue a certificate to the Collector of the District (by whatever name called) for attachment of the property of the person committing breach and the Collector shall proceed to attach the property and upon further directions of the Charity Commissioner, sell it and remit the sale proceeds to the Charity Commissioner.
(6) The Charity Commissioner shall then pass suitable orders regarding the sale proceeds so remitted by the Collector in accordance with the provisions in section 41 F of the Act.
(7) The Rule prescribed in the Code of Civil Procedure, 1908 for arrest and detention of a judgment debtor in civil prison shall apply for arrest and detention of the person who has committed breach of the
(8) The State Government may notify the civil prison in every District where the office of the Assistant Charity Commissioner or Deputy Charity Commissioner is situated.”.
- After Schedule IX-C appended to the principal Rules, the following Schedule shall be inserted, namely:—
[See rule 19 (2A)]
Information to be submitted by the Auditor along with Audit Report under sub-section (1) of section 34 of the Maharashtra Public Trusts Act.
||PAN No. of Trust.
||Registration No. with date of registration under section 12AA of Income Tax Act, 1961 (43 of 1961).
||Acknowledgement No. with date of filing of the Return of Income for earlier three years.
||PAN No. of all Trustees.
||Name of Trustee
- After Schedule X-AB appended to the principal Rules, the following Schedules shall be inserted, namely:—
[See rule 25AAA (3)]
Register of Applications made under section 41F of the Maharashtra Public Trusts Act.
||Date of filing of applic- ation
breach of the order
|Particu-lars of order passed under Chapter- VI of the Act and Date
the Public Trust
|Date of Decision
[See rule 25AAA(4)]
Notice to show cause as to why action should not be taken under
section 41F of the Maharashtra Public Trusts Act
Title of the Office
Whereas …………………………. has made application to this Authority that you have disobeyed the order passed by……………………….. the (Name of Authority) under Chapter VI of the Maharashtra Public Trusts Act, 1950 in proceeding No……………. of 20………or in suo moto proceeding under the said Act, and therefore, you are hereby required to appear before this Authority on the ………………….. day of ………………. 20 …………………………….. to show cause why action should not be taken against you under section 41 F(1).
Given under my hand and the seal of the Court, this ……………. day of ………………………… 20 …………………………..
Authority / or by his Order
Superintendent of the Office.”.
By order and in the name of the Governor of Maharashtra,
- S. KALOTI,
Legal Advisor-cum-Joint Secretary to Government.