Greetings from CWS, Hyderabad!
While I was browsing the website of SRRF, I came across a presentation which had the following 4 points.
- Grants to NGOs outside country
- Grants to sister concerns outside country
- Payment for procurement of goods / services from outside India
- Payment for travel expenses of Indian Board members / staff
In case of 1 and 2, I seek some clarity from all of you. If grants are given to organizations outside India:
- How do we account the grant?
- Will the auditor in India take cognizance of the audit report of outside country and audit our books? This is important in the context that most of donor agencies are seeking audited report on actual expenditure although IT Act allows the grant to be treated as expenditure.
- 3 establishes a vendor-vedee relation but in case of consultancy:
- What should be done for TDS? Can we deduct TDS and if yes, how do we deposit to the exchequer?
- Can the consultant claim TDS upon filing of returns in his home country?
- I am not seeing problem in 4 as it amounts to more or less a reimbursement of expenses and would attract certain provisions of IT and RBI.
Kindly comment on the issue for further clarity.
Thanks and regards,
B V Soma Sastry
Director – Finance and Admin
Centre for World Solidarity
12-13-438, Street No. 1, Tarnaka
Secunderabad 500 017