Donation of old computers by an MNC to an NGO not having FCRA

Dear Members of the SRRF dialogue group,

There is one NGO “Computer Shiksha” based in Gurgaon who collect old / used computers which they retrofit (if necessary) and place in Govt schools for providing Computer education to students coming from the financially weak backgrounds.

They have an excellent track record and have now been adding hundreds of students each month.

One MNC organization is considering donating old computers to them.

They want to know whether there would be any issue as they do not hold an FCRA certification.

Kindly advise.

Thanks & Regards,

MBL Bhargava
Trustee Letz Dream Foundation

Posted in FCRA, TAX, LEGAL | 9 Comments

Procedure for creating Endowment Fund

Dear Friends,
Season’s Greetings and Happy New year!

Please let me know the procedure for creating Endowment fund and related statutory / legal requirements to be followed / fulfilled by the NGO and the foreign and Indian donors.

Thanks

Udayashankar

Posted in FCRA, TAX, LEGAL | 1 Comment

Can FCRA funds be transferd to Sec-8 company

Dear Members,

I represent a funding organisation which is a registered public charitable trust, I want to know whether we can make a grant to Sec 8 company?

I also wanted to know whether Sec 8 Company(Earlier Sec 25 A) is eligible to get registered under FCRA Act 2010?

Regards,

Shekar

Posted in FCRA, TAX, LEGAL | 2 Comments

Funds collected out side India

Dear Sir/Madam,

I am a member of a Society,registered public trust in India.

Some members of the Society, have collected funds in US and Netherlands Accounts ,for a building renovation project in India.

However,they are not transferring the accumulated amount to Indian FCRA Account.

I wanted to know any legal recourse available to us,so that the funds collected can be brought back to India.

Also,would like to know where any breaches in Indian legal system has happened and recourse.

Thanking You

Warm Regards

Sandeep Kumar

Posted in FCRA, TAX, LEGAL | 2 Comments

Bank Charges

The bank charged for issuing FIRC certificates but debited other bank account in the same branch being maintained for Local Fund. NGO may consider the Bank Charges as Administrative Expenses under either source category. Comments.

CA, Satish Joshi

Posted in FCRA, TAX, LEGAL | 4 Comments

Which type of bank account to be opened for FCRA purpose.

Dear Members,

Please clarify, if saving bank account can be opened for FCRA purpose.

Wg Cdr Anil.Kr. Marya ( Retd)
Project Executive, ‘Education for Livelihood’
Rotarys’ Kusumpur Community Service Project
& IP-President RWA ‘Mayuri-Enclave’

Posted in FCRA, TAX, LEGAL | 6 Comments

Are separate FC-4 returns required for Prior Permission & Registration?

Dear Sir,

Need clarification on filing of FCRA return for a NGO got the fund on various prior permissions till August, 2016 and in Sep 2016 NGO got the FCRA registration and got the fund under FCRA registration. We need to clarify that NGO needs to file two FCRA returns, one is for prior permissions and other one is for FCRA registration which is online for the funds received after FCRA registration.

Or should NGO file online return only for the entire financial year including opening balance and fund received and utilised during the year including fund received under prior permissions.

Please clarify it.

Arvind Kumar

Posted in FCRA, TAX, LEGAL | 1 Comment

How to become All India Level Society from Single State Society?

Dear Esteemed Members
Greetings from New Delhi!

You are requested to guide me in the following matter:

Facts of Case

1. Existing Charitable Society registered in New Delhi under Societies Registration Act 1860.
2. 12A & 80G Registration obtained under Income Tax Act 1961.
3. Registered as Single State Society.
4. FCRA Registration obtained.

Requirement

To change the status from Single State Charitable Society to Multi-State Charitable Society.

Kindly help me with the following details:
1. Procedural formalities to be undertaken.
2. About the relevant forms, affidavit formats, etc.
3. Provisions to be kept in mind of Societies Registration Act 1860 & other applicable laws & rules in this regard.

Thanks in advance

Warm Regards
R. Anutam

Posted in FCRA, TAX, LEGAL | 4 Comments

Requirement for filing return under Lokpal postponed (indefinitely ?)

Dept of Personnel & Training, nodal Dept for Lokpal has come out with an Office Memorandum dt 1 Dec 2016 stating that ‘there is no requirement for filing of declarations of assets and liabilities by public servants now’. Following conclusions can be drawn out of this OM.

  • Immediate sword hanging over many persons requiring filing of annual asset & liability return to the Dept has been removed.
  • Deadline has not been postponed to a specified future date, but it appears indefinitely, though it is linked till the time Govt finalizes fresh set of rules for filing of such Returns.
  • Remember S. 44 which specified what all needed to be disclosed and to whom. Towards the end of July’2016, GoI passed an amendment bill removing earlier S.44 and replacing the same with a new section, which basically authorized Govt to decide the form and manner of disclosure of his assets & liabilities. It also amended S.59(2)(k) which authorized Govt to make rules in this regard from the retrospective date when the Act became applicable.
  • In other words GoI decided that instead of stating the manner of compliance with the annual return in the Act itself, it took the entire power of same in its hands. However there is a twist in the tale, the Govt had already come out with Rules for framing the ‘manner’ of submission (i.e. Forms) and minimum amount that needed to disclosed vide a Notification which was notified in the Gazette on 14th July 2014.
  • Question is now has the above-mentioned notification become null and void with amendments made in the Lokpal Act through Amendment Act on 29th July 2016. Dept’s 1st Dec 2016 memorandum thinks so, as it states that there is ‘no requirement for filing of declarations of assets and liabilities by public servants now’, mainly on the ground that earlier relevant provisions have been replaced by new ones.
  • However there is second school of thought, which states that the amended section did not nullify the rules that had already been notified earlier. See the language of amended section: ‘In and from the date of commencement of this Act, every public servant shall make a declaration of his assets and liabilities in such form and manner as may be prescribed (emphasis ours). Even the clarification issued by the Govt is through a Departmental Office Memorandum and not through a Notification.
  • So what should a common man who may fall in the definition of Public Servant do. Govt’s intention is very clear that it wants to amend the earlier rules as prescribed in the earlier set of Rules. There is hardly any opposition to this move, since most from civil society seem to be looking for some relief for persons who may fall within the definition of public servant as far as for NGOs are concerned.
  • In view of the above amendment, there is no immediate need of filing the asset / liability return and wait till the fresh rules are notified, which could be sometime away.                   (click here for circular)

__________________________________
Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
e-mail: socio-research@sma.net.in; website: http://www.srr-foundation.org

[Disclaimer: It may be stated that the above suggestions have been given for general awareness of SRRF Dialogue members and do not form any contractual relationship between the SRRF or opinion giver or the person/s receiving these information or anyone taking action based on the same. It should not be relied upon as a substitute for detailed advice or a basis for formulating business decisions.
If you find the above information of relevance, you may visit our web-site http://www.srr-foundation.org, where you will find a large data on various aspects of Development Related issues.]
Posted in FCRA, TAX, LEGAL | Tagged , | 1 Comment

Cash Deposits by NGOs under demonetisation

Present Income Tax Act 1961 has provided for tax treatment of anonymous donations as per Sec. 115BBC. Here the term is anonymous donations and this is different from cash donations. In case an NGO has received Cash donations, our suggestions are as follows:

  1. Please obtain PAN / ID card proof from donors / members of the NGO so that no one can refuse/ refute such cash payment and also get the cash receipts counter signed by payers.
  2. Secondly, in the present scenario, there is some confusion regarding tax treatment of cash deposits, even if these are proper, identified and accounted for. Govt. is thinking of making every tax payer to declare all cash deposits in 500/ 1000 denominations notes after 8th November 2016 till 30th December 2016 and taxing such deposits taxable. To what extent such intention is implemented and how is a big question.

Therefore, please wait for some clarity. The relevant section is 115BBC (anonymous donations- flat rate-30%)
____________________________________
Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
e-mail: socio-research@sma.net.in; website: http://www.srr-foundation.org

Posted in FCRA, TAX, LEGAL | Comments Off on Cash Deposits by NGOs under demonetisation