Query-How to manage disposal of FCRA assets?

Posted on July 13, 2012 by SRRF

Hi

Does anyone know what are the norms for disposal of old vehicles under FCRA? We have very old vehicles; can we dispose of them? Do we need permission from someone and what does one do with the money?

Thanks

Reena

SMRC

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One Response to Query-How to manage disposal of FCRA assets?

  1. Soma Satry says:
    July 16, 2012 at 7:28 am

    Dear Ms. Reena,

    Greetings from Hyderabad!

    1. The assets purchased using FC funds can be disposed like any other asset.

    2. You do not have to seek permission from any authority for the disposal of the old vehicles.

    3. The proceeds from the disposal of the vehicles should be deposited in FC account and will have to be reported in annual FC-6 returns.

    4. If the assets were purchased from the project funds at any time, then the terms of the engagement will apply. Otherwise my understanding is that the funds can be retained by the organization as their reserves.

    I would request others to put forth their views for better clarity.

    Thanks and regards,

    B V Soma Sastry

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