Show Cause Notice issued to 1775 NGOs for non-submission of mandatory ‎Annual Return

In May 2017 and again in April 2018, FCRA Department issued a public notice ‎asking NGOs to submit missing annual returns online from 2010-11 to 2014-‎‎15 without payment of any penalty. However, many NGOs still have not ‎complied with the directive issued by the FCRA Department.‎

On 16th November 2018, the FCRA Department has now come out with a show ‎cause notice directing 1,775 NGOs to explain why should their FCRA not be ‎cancelled. Last date for this is 1-Dec-18. List can be accessed on the following link:‎
FCRA Notice 16-11-2018
‎ ‎
NGOs are advised to check their name attached with notice, if their names ‎appear on the list, send a letter to MHA explaining why the return was missing. ‎

In case you have already submitted the annual returns and your name still ‎appears on the list, please send an e-mail to support-fcra@gov.in enclosing ‎proof of submission along with annual return. ‎
‎ ‎
‎_______________ ‎
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 | Comments Off on Show Cause Notice issued to 1775 NGOs for non-submission of mandatory ‎Annual Return

GST Implications for NGOs on transfer of goods outside state

Dear Sir/ Madam,

PO has been raised by an NGO for printing documents to a printing agency and in this PO the shipment address is mentioned outside Delhi and the billing address is mentioned as Delhi because vendor belongs to Delhi. The vendor himself couriers the consignment on behalf of NGO outside Delhi. PO states that the freight charges will be paid to Printing Agency as per actual.

1. Can printing agency raise the freight bill to NGO? Or is there any other way out?
2. Is it required to generate e-way bill by the printing Agency to dispatch the materials?
3. Is there any GST implication? (Let me clear that this shipment is not for furtherance of business)
4. Will it be GST bill or IGST bill?
5. on POD printing agency can write the name of NGO as a consignor.

Looking forward to hearing from you.

thank you.

Ravi Shankar

Posted in FCRA, TAX, LEGAL | 1 Comment

How CSR Defines Normal Course of Business?‎

Dear Members

Greetings for the day!‎

May I invite comments on the clause for CSR ACTIVITIES as per CSR Rules 2014 para 4(1) under Sec 135 ‎of the Companies Act, 2013, “The CSR activities shall be undertaken by the company, as per its stated ‎CSR policy, as projects or programs or activities (either new or ongoing), excluding activities ‎undertaken in pursuance of its normal course of business.”‎

So a Sec 8 company/ foundation/ NPO of a Private Limited (Subsidiary of an International Company) if ‎has a common Key Management Personnel (KMP) as also the Foundation is directly promoting the main business of the Pvt Co which ‎is a “Tech partner” & sourcing the “products”, will this constitute a conflict of interest & violate the ‎above rule?‎

Best

Hardeep

Posted in CSR | 2 Comments

No GST on religious, yoga or meditation programme by such ‎registered organisation

Ministry of Finance has come out with a Circular (No. 66/40/2018) dt 26 Sep ‎‎2018 stating that entity registered under S.12AA for the purposes of ‎advancement of spirituality, religious activities or yoga’ would not be subjected ‎to GST on any amount charged towards fee or any consideration towards, ‎camps or classes for organizing religious, meditation or any other spiritual ‎programme, including towards any lodging boarding costs. ‎

However if the entity is involved only for organizing accommodation, etc. and ‎does not organize the programme, in such case, GST would become applicable, ‎even on compulsory donation. ‎

It may be further noted any other programme of music, dance, dance aerobics, ‎etc. would be subject to GST. ‎

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

Posted in FCRA, TAX, LEGAL | 2 Comments

Is it possible for NGO to open branch office outside India

Dear Members,

Is it possible for a Trust (NGO) to open a branch office outside India, If required modification can be done in Trust deed?

We can take assumption that we’ll not use any funds raised in India for that office whether it is FCRA or Local.

Vikas Pandey

Posted in FCRA, TAX, LEGAL | 2 Comments

CSR Literature

Dear Members,
Greetings..!!

Can you suggest me any article/sample audit/annual report explaining the

1) CSR Budgeting
2) CSR Financial Expenditure

when an Implementing Agency is involved in CSR Policy.

PS: Please suggest at earliest. I am aware of 2% expenditure and annual report format. But I need information on finance explained for every expenditure

Clarification Needed:

1) Company can show upto 5% of CSR Expenditure as Administrative Expenses (Skill Improvement is not included)
2) What percentage of CSR Expenditure can Implementing Agency show at maximum..??

Thanks

Harsha S
Program and Project Manager

Posted in CSR | Comments Off on CSR Literature

Bank Refuses to credit FD amount to FCRA Account

Dear Members,
Good Morning

I have a query that if any NGO who received Foreign dontion from their foreign donor to their FCRA account (XYZ bank). With that donation they prepared fixed deposits. But now they want to utilize that fixed deposit. But bank manager told that they cannot credit the fixed deposit which is made out of foreign donation.

My question is that now that NGO wants to credit that FD in the same bank (XYZ bank). Is it possible to credit that FD in the same XYZ bank or they have to open separate account to utilize that fixed deposit donation.

Please reply to my email.

Thanks and Regards,
Anitha

Posted in FCRA, TAX, LEGAL | 15 Comments

Corpus Donation

Sir,

I had read in one of your answers that under CSR cos can donate to corpus fund ? is it true?Under what section of the act ?whatever details we can get from your forum we will like others will be too hapyy.

Thanking you.

With Best regards,

Devendra Desai
Founder / Managing Trustee
Children Toy Foundation

Posted in FCRA, TAX, LEGAL | 2 Comments

Can Prior Permission money come in installments or it has to come at one go?‎

Hello,

We are a registered public charitable trust based at vadodara, Gujarat. We are established with a purpose of financing education of economically backward children who wish to study. We have already sponsored college education of 3 girl child to start with.

I was going through your website and found discussion forum on various issues. I need one of my query addressed by your panel experts. Can you please put forth the query and request the expert to reply pls.

Q – we wish to mobilise some funds from abroad, for which we need prior permission under the FCRA since we are a new organisation. Prior permission is given for a specific contribution, for specific purpose and specific amount. So my query is that if for a particular project I have estimated an expense of say about Rs. 5 lacs which someone from the US is willing to donate. Can that money come in instalments or it has to come at one go??? Can this donor collect the said fund from various different individuals who are also US citizens willing to donate; create a pool and then donate it to us???

Awaiting for your kind reply.

Rgds.

Minal Shah
Trustee
Gyandeep Foundation

Posted in FCRA, TAX, LEGAL | 3 Comments

Can a religious organization receive funds for social activities?‎

Dear Sir,‎

We have an FCRA registration in the name of Seminary Council Baptist Theological Seminary. ‎We got renewal certificate. In the certificate, it is mentioned nature of association as Religious, ‎but in the renewal application (FC-3) we had applied as Religous, Social & Education.‎

My query is can we receive funds for social activities and community development projects like ‎sewing institutions and self-employment vocational training course for poor people through our ‎organisation.‎

Thank you

Devasahayam Boni

Posted in FCRA, TAX, LEGAL | 3 Comments