Treatment of Excess Foreign Contribution

I would like to know the FCRA provisions with regard to refund of excess foreign contribution received after utilization for a specific project.


Posted in FCRA, TAX, LEGAL | Tagged | 2 Comments


Dear Sirs,

We are an organisation in MP working on healthcare. We have a donor which was not classified as a foreign company and as per the company’s directive we have been considering this money to be indian money.

We now have a confusion when while reviewing the New Companies Act wherein the subsidary company seems to become a foreign entity due to the shareholding pattern of holding company. Our donor is the subsidary company.

therfore the following are our queries

  1. are all the funds that we have received since 1/4/2014 classified as foreign donation under FCRA???
  2. if they are considered foreign donation and we have fcra but have not deposited this money in fcra account, what are the consequences?
  3. what is the corrective action that can be taken?



Posted in FCRA, TAX, LEGAL | 14 Comments


Integrated Application for Registration, Prior Permission and Renewal

  1. One integrated form prepared for FCRA registration, Prior permission and Renewal. Till now one had to use different forms for each of these activities, FC3 for registration, FC4 for prior permission and FC5 for renewal, now an integrated form FC3 has been drafted.
  2. Now printed copy of form not to be submitted, instead applications need to be Digitally Signed just like as in Income Tax and Companies Act. All documents required to be submitted in hard copies would now be scanned and submitted alongwith these applications.
  3. Fee would need to be paid online through electronic gateway.

Declaration on web-site

  1. All NGOs granted registration / prior permission would need to post Audited FCRA Accounts would need to be posted on their websites.
  2. Any foreign contribution received would need to be displayed within 7 days of receipt on website.

Annual Return

  1. From now on even annual return (FC6 till now) will no longer need to be filed in printed copy and only Digitally Signed copy would need to be filed alongwith all supporting documents. Time limit still remains of 31st

Requirements from Bankers

  1. All bankers have to inform within 48 hours Central Govt. about receipt of any foreign contribution by any ‘person’ who receives such contribution but till date does not have registration / prior permission. In previous rules this was 30 days.
  2. Bankers are also required to inform within 48 hours the central govt. all remittances received by FCRA registered or having prior permission in their designated or utilization bank accounts.

Changes in Forms

  1. Earlier there were 10 forms (FC1-FC10), these have now been reduced to 7 (FC1-FC7). As mentioned above Form for Registration (FC3), Form for Prior Permission (FC4) and Form for Renewal (FC5) all have been merged in a new form FC3. Also earlier forms for articles (FC7) and securities (FC8) have been merged into one form FC5. Consequentially all other forms have been renumbered in sequential order.

Changes in these forms are highlighted as below:

FC1 (new Form No. FC1): Intimation of receipt of FC by way of gift from relative.

  • No change except details like e-mail, mobile nu., address etc. now sought.
  • Still to be submitted in a printed copy.
  • Normally to be submitted by an individual.

FC2 (new Form No. FC2): Prior permission for receiving hospitality

  • Normally to be submitted by persons covered under S. 3, (legislature, Govt employees, judges, etc.) who are likely to visit abroad and accept foreign hospitality
  • Certain changes made in the form but seem more a case of drafting error, as details of organisation, which will provide hospitality seem to have been left out.

FC3  – earlier only covered registration (new Form now covers registration / prior permission / renewal)

  • Very strange now the form requires details of facebook page and twitter handle of the chief functionary
  • Now alongwith details of Chief Functionary and executive members/ office bearers, details of Chief Patron are also requested.
  • In case any of the persons whose details have been provided is a foreign citizen, following additional details are requested:
    • Place of Birth
    • Passport No.
    • Permanent address in foreign country
    • If a person of Indian origin, then details of OIC/PIO card,
    • If resident in India, from when,
    • In case of above persons details of any positions held in any other NGO
    • Details also asked for organisations which have been granted prior permission / registration and are a unit / branch / associate of the organisation applying.
    • Has been prohibited under S. 10 or asked to obtain prior permission under S. 9(d).
    • Details of designated / utilization accounts being asked.
    • Q 13 asks for details of foreign sources both individuals as well as organisations from whom the foreign contribution is proposed to be received. Most likely this is applicable in case of prior permission where sources are known. However the Form does not mention that this information is not required in case of Registration cases.

FC4  – for annual return (earlier FC6)

  • Prior permission return earlier used to go manually, now this will have to go online.
  • Facebook page and twitter handle details of the chief functionary to be given here too.
  • Total number of employees to be disclosed – This could pose problem as many NGOs are not registered for PF & ESI
  • It is also asking donor wise details of foreign / local source. Rather perplexed, if a donor is a local source, then it should not appear in FCRA return in any case ?
  • Now project details are also required along with address of implementation. Now amount has to be given address-wise.
  • Details of administrative exps. asked for. Earlier no details were required.
  • Branch office details to be provided
  • Details of Designated as well as Utilisation Bank Accounts also required to be disclosed
  • Details of closing balance not asked for.
  • Now Chief Functionary has to declare that FC has not been used for (i) detrimental to national interest, (ii) not likely to affect prejudicially public interest, (iii) not likely to affect prejudicially security, strategic, scientific or economic interest of the State and any matters connected therewith or incidental thereto.
  • Many changes in List of purposes to be discussed separately.

Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008

Posted in FCRA, TAX, LEGAL | 13 Comments

Does CSR comes under RTI Act?

Dear Sir,

Good Morning.
Does CSR comes under RTI Act ?


Sanjay Kishore Vaishnav

Accounts Officer

Ambuja Cement Foundation
Opposite Railway Station,
Marwar Mundwa – 341026
District – Nagaur (Rajasthan)
Posted in CSR | 2 Comments


FCRA Department is going to organize monthly meeting  to redress the grievances related to FCRA registration/prior permission. This meeting will be held by Director (FCRA) with genuine representatives of the associations at Room No. A-104/1, 1st Floor, NDCC-II Building, Ministry of Home Affairs, Jai Singh Road, New Delhi – 110001 on 5th day of every month.

Associations wishing to attend the said meeting may send their request on e-mail address “” mentioning name & address of the association, name of the person desirous to attend the meeting, application number, issues for discussions etc. (click here for related circular)

Hope this information will be useful to those association facing problem in grant of registration/prior permission.

Ramanuj Maurya
Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008

Posted in FCRA, TAX, LEGAL | 1 Comment

Foreign Technical Services contract using a Grant

Couple of questions –

– Can a FCRA “Grant” be used for “sub-contacting” with an international for profit or not for profit entity, after complying with TDS and service Tax requirements? This could be a FTS contract.

– Can a local “Grant” be used for “sub-contacting” with an international for profit or not for profit entity, after complying with TDS and service Tax requirements? This could be a FTS contract.




Posted in FCRA, TAX, LEGAL | 6 Comments

Service Tax on CAB vendors

Dear Sir,
There are few cab vendors who are not registered under ST but run business as a sole proprietor with PAN number. Hope cab service will have ST implication.
Suppose, if someone want to use such service provider, is it recommend to use? If yes, what would be transaction limit.

Thanks in advance.



Posted in FCRA, TAX, LEGAL | 3 Comments

Can an NGO open a office in residential area/flat

Dear All
I want to open a new question and will wait for your response.

Can an NGO open a office in residential area/flat.If yes what is rule/guideline?If no what are options?

With regards


Posted in General | 19 Comments

Sustainability of Voluntary sector

Dear Friends,

No one can deny that voluntary efforts do require funds and other resources.

Central and State Governments do not seem to be positively inclined towards NGOs.

We, the NGOs have to look for resources with in the Country before seeking funds from outside, be it for MDGs or SDGs. Safe guarding Indians’ dignity demands rights based approach to development efforts. We have to ensure Government programmes reach the poor. Foreign funds can be utilized to facilitate this process and to promote cost effective solutions such as SRI for paddy and applying SRI principles to other crops coupled with nonchemical methods of cultivation. That integrates the objectives of resource conservation and action to slow down the process of climate change. That would reduce the costs of cultivation.

The above necessitates capacity building of communities, developing various kinds of skills and designing extension services for the same.

The objectives of creating non agricultural jobs by developing skills of the rural poor based on rural, semi-urban and urban requirements both in industrial and service sectors should also be addressed. This can be achieved easily in collaboration with State and Central Governments.

Foreign donors would be hopefully willing to fund facilitation processes, capacity building and skills development.

National and international issue based campaigns for funds can be done only by specialists and a few Agencies / NGOs.

Upscale – ability of a proposal ( cost effectiveness, simple and effective technologies, magnitude of local resource mobilization for a given external input) attracts funds from external sources.

Web appeals and mass appeals through public events for funds, internal mobilization of resources by taking full advantage of Government sources / schemes including NABARD and other Banks, partnership building under CSR, etc; could be thought of. Many NRI groups and individuals are interested in supporting innovative development action.

Future global thrust would be on facilitation but not so much of development aid / funding / grants, meaning each Country has to fund it’s own development / climate action.

NGOs, given the attrition rates within the voluntary sector, have to develop their own skills for community mobilization, project preparation, writing concept paper and presentation on a continuous basis.


Posted in General | 9 Comments

Feedback report of the workshop “Service Tax, FCRA & Taxation for NGOs” 9th May 2015

Service Tax, FCRA & Taxation for NGOs workshop

[Saturday, 9th May 2015, India International Centre (Annexe), 40 Max Mueller Marg, New Delhi – 110003]

Dear Friends with a special Hello to all the Participants who attended the workshop

I thank all the participants who attended the workshop. My personal thanks to each one of you for finding time to be at the workshop and making a success of it through your extensive interactions. Through this communication we share your feedback and other details that we promised during the workshop.

The Feedback forms have been compiled and collated. There were 52 participants, almost 80% of whom have given their feedback. Feedback required scoring for each session as well as for overall workshop. The feedback gives score of 80% for the overall workshop. While quite satisfying, however we are not going to sit on our laurels and would try our best to further improve the quality of these sessions. Session-wise results are attached below.


One of the oft requests coming is that there should be an introduction session. Yes I believe this should have been there, we always do it, but we erred in not keeping with this tradition, where everyone gets to introduce oneself and also mention the expectations from the workshop. I think pressure on managing time got the better of us. To make up, we are now providing a list of participants and their background. Please click on the link There were some requests for the email ids’ too, however as we have not taken any specific permission from the participants to share their e-mail ids’ on net, it would not be proper to provide the same. However I am sure in today’s time of social media connectivity, connecting to these persons would not be problem.

A few requests to organize similar workshops in different parts of the country have come, one from Chennai, another in Patna and another in Raipur. We will contact the concerned persons and hope to work with them. In case any of you are interested in organizing similar workshops in association with SRRF, please do contact us.

Several requests are there for more time to cover different topics. I agree that time is always a constraint and more time will always be better, perhaps we need to consider either having the workshop over two days or to reduce the topics being covered.

On technical side, I would like to update that our ‘Reference Material’ folder included an FAQ on CSR issued by the Institute of Chartered Accountants of India (ICAI). ICAI has since issued a Guidance Note on Accounting for Expenditure on Corporate Social Responsibility Activities. Subsequent to this the FAQ issued earlier by ICAI have been withdrawn. You can download the Guidance Note from the link A summary of this Note would also be issued soon on this forum for your reference.

Once again I thank you on behalf of SRRF in being part of organizing such a wonderful and learning workshop.

Thank you.

Subhash Mittal

Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008

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