Precautions on Online Acceptance of Foreign Donation

Dear Dialogue Members,

We are a NGO (Pratham Books) works towards development and distribution of high quality children books in multiple Indian languages. We have an online platform to raise money “Donate a Book” (https://donateabook.org.in/). As of now, we are accepting only Indian Donations and have linked our Non-FC (domestic) Account to it. But now, lot of foreign donors are showing interest in donating to our various campaigns. I have a few queries (from statutory point) on this:

  1. Can we link our FC Account and start accepting foreign donations through on-line.
  2. Is there any paper work required for the same
  3. Is there any specific guidelines under FCRA Act which needs to be followed while accepting foreign donations on-line.

Looking forward for your valuable response.

Regards
Pragya Thakur

Posted in FCRA, TAX, LEGAL | 6 Comments

Service Tax on Security Services

As per the recent amendment in the service tax laws , service tax is to be deposited by the payer (person availing the services) for the security services (security guards). If the organisation is not registered under the service tax rules, what is the process of depositing the service tax, will the organisation be exempted or the organisation have to get itself registered with the authorities?

Sachin

Posted in FCRA, TAX, LEGAL | 2 Comments

PF Coverage for NGOs

Dear dialogue members,

It is reported that all Religious and Charitable Institutions which are hitherto exempted from coverage of EPF are now covered under EPF provisions w.e.f. 01.04.2015. Can anybody through light on this please.

Regards,

Sridharha

Posted in FCRA, TAX, LEGAL | 10 Comments

Service Tax on Grant

Dear Members,

We have received grant Rs.10 Lacs in 28th August 2015 from foreign source for a specific project and deposited in FCRA account. The said amount is not inclusive of service tax.

Q.1 What amount to be deposited? Is it direct 14% of Rs.10 Lacs ?
Q.2 When to be deposited?
Q.3 Is service tax deposited from FCRA account?
Q.4 How we will intimate the donor?
Q.5 What should be the utilization amount shown to donor i.e., (10lacs-service tax) or (10 lacs).

Please advice.

Ashok Mishra
SNS Foundation

Posted in FCRA, TAX, LEGAL | 4 Comments

Income arising from Foreign Contribution

Dear Sir,

We are running a clinic and for this we have purchased equipment out of FC grant. Day to day running cost of clinic i.e., Rent, elect charges, water charges, payment to sweeper and salary payment to staff is is also made out of FC grant.

We are charging a nominal amount of Rs. 30/- towards registration fee from the patients. We are also selling medicines ( at no profit) and other related items ( at no profit) to the patients and for this we are issuing receipt to the patients. In the receipt instead of mentioning it as registration fee and sale of medicine we are showing it as receipt from community contribution. Here I would like to mention that the medicines which we are selling is purchased out of the money received from patients on account of Community contribution and not from FC grant

My question is:

Do we need to deposit the registration fee and cost of medicine received from the patient in FC designated bank account ?

Do we need to issue receipt in the name of registration fee and sale of medicine / Spectacle instead of showing it as community contribution ?

Do we have to mention sales tax number / vat in case if we issue receipt showing it as sale of medicine / specs etc.

Thanks

Astha Clinic

Posted in FCRA, TAX, LEGAL | 4 Comments

Fund Account Treatment – Clarification

HI,

I am working in an Indian NGO and we are getting grants from our USA based funding agency. As a general practice we are booking expenses in our books of accounts. However under certain case for ex. salary of some staff members based in India we are booking their salary  expenses in to our USA based cost centre wherein salary is being paid by us in India. These expenses are not being reflected in our books of accounts.  I would like to know whether the above practice is allowed as per the FC or IT act

With best regards

Sweety

Posted in FCRA, TAX, LEGAL | 2 Comments

Some recent case laws on Charitable institutions…

Deemed provision under S.12AA is not automatic and would need to be followed with a writ

Recently Allahabad High Court (Full Bench) has ruled that non-disposal of an application for registration before the expiry of six months as provided u/s 12AA (2) would not result in deemed grant of registration.

Assessee would need to file a Writ to compel CIT to consider application. [CIT vs Muzaffar Nagar Development Authority [2015-ITRV-HC-ALL-144]].

Consistent surpluses without adequate expenditure could loose non-profit status of an entity

In another case, taking a hard view on super hospitals operating under charitable provisions, the Bombay High Court has held that an institution consistently generating surplus which is utilized to procure assets, spending meager amount on treatment of poor patients is not existing solely for charitable purpose.

Even if exemptions have been granted in past (in this case under S. 10(23C)(via) this cannot mean that it can continue in future too. [M/s Yash Society vs CCIT [2015-ITRV-HC-BOM-145]]

___________________________________
Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
e-mail: socio-research@sma.net.in

Posted in FCRA, TAX, LEGAL | 1 Comment

FCRA fund for seminar.

Can i received FCRA fund from individual foreigner for training/seminar fees and deposit in FC Bank account

Regards
Manish
Indore

Posted in FCRA, TAX, LEGAL | 9 Comments

Road Accidents and Capital punishment

Dear Friends,

Our Intellectuals are a strange lot. They never made enough noise, if any / at all, about thousands of deaths of pedestrians and others every year. They are worried about the rarest of rare capital punishments.

Capital punishment in rarest of rare cases is not for deterrence. It is just to punish the murderer / terrorist /rapist. Discussing the deterrent potential or otherwise of capital punishment is not correct.

Many Countries which have abolished capital punishment waged / supported many unjust wars. Some of them sell weapons of mass destruction !

It is enough if India provides world class pedestrian infrastructure and health care to prevent lakhs of deaths every year.

Udayashankar

(click here for reference)

Posted in Pedestrian safety | 5 Comments

Involvement of Government requirement/ Taxes in organizing event to raise fund

Could anyone guide us for government requirement and taxes involved in organising a musical event to raise fund.

Early response will be appreciated.

COLOMBOWALA

Posted in FCRA, TAX, LEGAL | 4 Comments