Good Afternoon,
I seek your valuable advice for the following.
Old assets bought out of FCRA project in 2017 has been sold to ordinary local buyers in town. Where should we deposit the money/ cheque given by them?
Can cheque be deposited in either FCRA utility bank account or SBI MAIN Branch?
Anurita
Guwahati,
Assam, India
Dear Sir,
Thank you so much for updating . As suggested, the sale of assets acquired out of Foreign Contribution is also FCRA Funds. The sale proceeds need not be deposited into the FCRA Main Account at SBI New Delhi. Kindly suggest what documents and procedure are required by SBI Bank with the FCRA sale of assets cheque which receive from the vendor.
Further, if we try to deposit it into the FCRA main SBI Bank account, we are not assured that the bank will accept the FCRA assets sale amount. If yes, then suggest what the required documents/form to deposit the FCRA assets sale amount.
Yes, that is true, while earlier SBI, Sansad Marg, did not accept any FC funds arising from India, however lately we have seen a few cases, where SBI has accepted the funds, if a proper documentation, mainly a CA certificate stating that original funds were debited from the FCRA designated account.
If still anyone faces this problem, I would suggest that amount may be deposited in ‘Another FCRA A/c’. Note this account is different from Utilisation A/c. This is the account where you can utilise or keep the FC funds, while Utilisation Bank A/c is only for utilisation.
The SBI, NDMB will not accept this, as they accept the FC only from a foreign source. You have to therefore deposit such funds in your FC utilisation account only and not in any local fund account.
Hello there,
The sale of assets acquired out of Foreign Contribution is also FCRA Funds. The sale proceeds need not be deposited into the FCRA Main Account at SBI New Delhi but should rather be deposited into the FCRA Utilisation Account (Which was the original FCRA account prior to the the amendment).
It is a best practice to keep the FCRA Account at SBI New Delhi only for receipts and payments of amount from Direct Foreign sources and not mix Indian Proceeds. Small Practices like these play a big role.
If the organization does not have a FCRA Utilization Account then you can open one with any nationalized bank and can intimate the Ministry of Home Affairs or FCRA about additional FCRA Utilization Account.
Regards,
CA Noel Sushant Gole
Please visit the following link to get answer of your query.
https://blog.srr-foundation.org/?p=3468