Recently I was asked to comment on treatment of FC assets received in kind. Any assets received in kind are also to be treated as part of foreign contribution (till now govt. has not prescribed any financial limit so all articles rec’d should be covered). A return in the form FC-7 should be filed. No time limit has been specified however it is presumed that since this for a financial year, same time limit as prescribed for FC6 (i.e. upto 31st Dec) may be observed.
As stated earlier, the Receipt of articles need to be disclosed under FC-7. Wherever the articles have not been utilised during the year, these need to be carried forward. A CA’s certificate is to be given certifying that organisation maintains a proper record of the same, and these articles (contribution in kind) are with organisation and carried forward.
In case where, articles are utilised, i.e. transferred to another organisation or disposed off, then the same needs to be disclosed under Utilisation. Funds rec’d from disposal need to be deposited in the FCRA account and also be disclosed under FC-7.