Dear Friends,
I am facing a practical problem. We have recently signed an agreement with EU for a 5 year project. As part of the project proposal we had included GUES, Denmark as one of the partners (In EU language, it is associate) in the project.
1. Can CWS transfer FC funds received in India to GUES?
2. What are the FCRA implications to this?
I would request your feedback on this.
Thanks and regards,
______________________
B V Soma Sastry
Centre for World Solidarity
12-13-438, Street No. 1, Tarnaka
Secunderabad 500 017
Andhra Pradesh
www.cwsy.org
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In case of CONSULTING CONTRACT-What about TDS in case of an outside organisation. The TDS has to be at 30%. What says you on this sir.
Regards
Surat Sandhu
Dear Martin,
Thanks for your request.
As far as original request of Soma is concerned, I think it has already been answered. Since the person to whom the funds are to be sent is a service provider, I believe it should be a consultancy contract and not a grant agreement. Further service is to be used in India and not abroad, hence its application is also in India. I believe in view of the above, transfer of fund should not be a major issue. Of course a chartered accountant approval would be required for the same.
However my other submission is that nowhere the FCRA talks of utilisation of funds within India or outside India. It only talks of accounting of all FC funds received. I would like to hear others view on the same.
rgds
subhash
Dear Sastry
I have worked with two different organizations in the past, wherein such transfer of funds to organizations outside of India was necessary. Any transfer of fund abroad is governed by FEMA and RBI permission is necessary. Depending on the required, CWS will need to make a case for either transfer specific to this recipient or a blanket approval.
Best regards
Sriraman
Dear Mr. Pinto & Subhashji,
Since it is a major issue and affecting or may affect most of us, we need to discuss with FCRA department for a solution.
regards
Mathew Jose
Dy. Director (F&A)
Deepalaya
visit us at http://www.deepalaya.org
Dear Subhash ji,
This transfer of funds back to Donor outside of India is a tricky issue.
What is your opinion on this as more and more organisations are
having problems with this.
Regards
Martin
Dear Friends,
Best thing is to have a tri-partite understanding with the Main Donor Agency that the Denmark agency to be paid directly by the Donor Agency as per CWS’ money transfer advice and debit the same to the Project/Programme under consideration.
Otherwise RBI’s permission is required for each transfer.
Money received under FCRA is like tooth paste when once pressed out can’t be thrust back into the tube.
Uday
It is the beneficiary organization. GUES, Denmark is a partner of CWS in this project. We have to transfer approximately 7000-10000 euros every year. They would be providing services to us in India. We intend to have a grant agreement with them.
Is Denmark party a beneficiary organisation ( to whom the funds are being provided ) or service provider.
Thanks
Db