Is 12 A compulsory for FCRA?

Posted on March 17, 2015 by SRRF

Dear Sir,

I would like to know some facts and logic about IT

One NGO having FCRA but they don’t have IT 12 AA registration.

Shall they eligible to receive foreign funds.
If so did they pay tax for the receipts from foreign donors

Please give a clarifications

Mohankumar
CADRE- India
(Center for Action Development Research and Education in India)
Kurumathoor, Kuzhithurai, PO,
Kanyakumari, Dist. Tamil Nadu.
India. PIN. 629163

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4 Responses to Is 12 A compulsory for FCRA?

  1. Subhash Mittal says:
    March 18, 2015 at 9:56 am

    Dear Mohan,

    I agree with both the responses of Soma Sastry and Sanjay Vanani. However while 12A may not be needed for FCRA registration, but its importance cannot be undermined. Apart from Income Tax implications, non-availability of 12A could have adverse implications from service tax angle. So I strongly recommend thta you should immediately obtain 12A registration.

    rgds

  2. B V Soma Sastry says:
    March 18, 2015 at 6:15 am

    Dear Mohan Kumarji,

    Greetings from Hyderabad!

    Please note that FCRA registration with MoHA and registration under section 12AA of the IT Act are independent and exclusive. The registration under section 12AA gives NGOs the status of being a non profit organization. The income of the NPO in the absence of 12A becomes taxable. FCRA gives the NPO the status to receive foreign contribution. FC funds can be received even without the 12A certificate.

    This is my understanding on the issue.

    Thanks and regards,

    B V Soma Sastry

  3. Sanjay Vanani says:
    March 17, 2015 at 5:31 pm

    Dear Mr. Mohankumar

    As per My understanding 12AA is not require for FCRA registration. However it is advisable to register u/s 12AA of IT Act as soon as possible.

    Sanjay Vanani

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