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?‎



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,

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..??


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,

Posted in FCRA, TAX, LEGAL | 15 Comments

Corpus Donation


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?‎


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.


Minal Shah
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

Consultancy by FCRA Registered organization to Non-FC NGOs

Dear Friends,‎

Season’s Greetings from Hyderabad!‎
Please clarify latest position on FCRA certified NGOs giving consultancy contracts / paying ‎service/consultancy fee to non-FCRA certified NGOs.‎

For ready reference: ” any fee / consultancy charge out of foreign funds received by FCRA ‎registered NGOs paid for services to non-FCRA NGOs is not treated as foreign contribution fund. ‎Pl refer to FCRA 2010, page 3, explanation 3″.‎

Please confirm validity of such a provision as of now.‎

Posted in FCRA, TAX, LEGAL | 1 Comment

Hefty Compounding Fees under FCRA

FCRA Dept, has recently come out with a Gazette Notification No. SO 2291 (E) dated 5 June 2018, which has completely revamped the compounding penalties under FCRA Act 2010, superseding earlier two Notifications (SO 1976(E) dt 26th Aug 2011 and SO 2133(E) dt 16th June 2016.

The new notification covers a large number of offences specified within the FCRA Act 2010 and seems to be quite comprehensive. Let us briefly look at these offences and penalties imposed.

1. Acceptance of Foreign Hospitality without Prior Permission (S.6) Rs 10,000/- Not covered earlier
2. Transfer of FC to any other person who does not have registration or prior permission. (S.7) Rs 1 lakh or 10% of trfd whichever is higher. Not covered earlier.
3. Violating 50% limit on Admin Exps. (S. 8) Rs 1 lakh or 5% of excess amount spent on Admin. whichever is higher. Not covered earlier.
4. Accepting FC without registration or Prior Permission (S. 11) Rs 1 lakh or 10% of amount so accepted whichever is higher. Earlier this penalty was for 2%-5%, with minimum range from Rs 10k to Rs 1 lac, whichever higher.
5a. Accepting FC in any account other than designated account. Rs 1 lakh or 5% of amount so accepted whichever is higher.  




5b. Non-reporting of such amount by banks and concerned entity. Rs 1 lakh or 3% of amount so rec’d or deposited whichever is higher. -ditto-
5c. Non-FCRA funds deposited in designated account. Rs 1 lakh or 2% of amount so deposited whichever is higher. Not covered earlier.
6. Non-intimation of receipt of FC as per S.18 Rs 1 lakh or 5% of amount so rec’d during non-submission period, whichever is higher. Not covered earlier.
7. Non-maintenance of account and records as per S.19 of the Act. Rs 1 lakh or 5% of FC during non-maintenance period, whichever is higher. Not covered earlier.

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

Posted in FCRA, TAX, LEGAL | 12 Comments