A society is registered under the Society Registration Act 1860 but is not registered under section 12 AA of the Income Tax Act and it carries out charitable objects.
Can it not claim basic exemption limit under Income Tax Act as an AOP? Is MMR Maximum Margional Rate applicable ? Further the shares of members have not been defined and members individual income is above basic exemption limit. Please advise.
With Thanks & Regards
CA Rajeev Sharma
Lucknow 226 016
Recently, in the matter of Malabar Hill Citizens Forum Versus Commissioner – Central Excise, Mumbai, Mumbai CESTAT held that amounts collected for conducting Aerobics and Yoga classes would fall under Health & Fitness Services and accordingly would be chargeable to service tax. CESTAT has relied on the judgment given by same bench in the case of Osho International Foundation, Neo Sannyas Foundation Versus Commissioner of Central Excise, Pune, 2015 (6) TMI 441 – CESTAT MUMBAI, dt. 27th May, 2015.
In this case, Mumbai CESTAT referring the definition of Health & Fitness services has ruled out the plea of the appellant that they are a charitable institution. It has observed that an entity whether charitable or otherwise would be covered under the term ‘any establishment’ and thus, would fall under the taxable service category of Health & Fitness services.
Case Source: Central excise, Malabar Hill Citizens Form, Mumbai 2015 (9) TMI 789
Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
we are a small Charitable trust registered at Jaipur in Rajasthan and having employees ranging between 18-25 depending upon the projects and availability of funds. We had PF and we were regularly complying all PF norms. Two years back we introduced our personal systems including a salary structure and also introduced gratuity. All of us know that in last year we years funding scenario has changed a lot and in this financial year 2015-16 our main funding from CSR has also shrunk significantly. Therefore the DST cost (Development Support Team cost) and OH costs also impacted as it was directly linked in percentage of programme funds. Now we discussed this issue with our staff and after discussion we arrived at consensus to maintain basic and pay only the take home as salary and stop PF deduction and submission of organisational contribution also.
All employees voluntarily gave their agreement to this decision in writing. Now we are wondering is it correct? what are the implications of it. Kindly give suggestions and advise pl.
Looking forward for your guidance
We had the following queries
1. If our work is largely about advocacy , including legislative advocacy and PILS, is it advisable to take FC money
2. A staff paid by a project that is foreign aided can conduct research and file PIL using Indian money??
3. An organisation having FC and Indian money can file a PIL using Indian money without it adversely impacting FCRA registration??
Centre for Social Justice
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:
- Can we link our FC Account and start accepting foreign donations through on-line.
- Is there any paper work required for the same
- 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.
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?
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.
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).
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.
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