Consultancy by FCRA Registered organization to Non-FC NGOs

Posted on June 18, 2018 by SRRF

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.‎
Thanks,‎
Udayashankar

Posted in FCRA, TAX, LEGAL | 1 Comment

Hefty Compounding Fees under FCRA

Posted on June 15, 2018 by SRRF

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.  

 

-ditto-

 
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

LAST OPPORTUNITY FOR SUBMITTING FCRA ANNUAL RETURNS

Posted on May 1, 2018 by SRRF

FCRA Department has issued a notice to 3292 to organizations who have not  filed their annual return for the period from 2011-12 to 2016-17.

As per this notice, all these organizations have been given a time limit of 15 days (i.e. till 8th May 2018) to submit their return. The status of the submission of annual return will be reviewed after 15 days of issue of the notice.  If any organization failed to submit the same, penal action will be taken against them.

It may be noted that evn if you have not rec’d Foreign Contribution during the above years, nill return must be filed. You can download the list of all these organisations from the link given below.

Please help us in sharing this information widely amongst all NGOs. (click here for list of organisation)

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

Posted in FCRA, TAX, LEGAL | Comments Off on LAST OPPORTUNITY FOR SUBMITTING FCRA ANNUAL RETURNS

Darpan Registration – What if Trustees refuse Aadhar?‎

Posted on April 11, 2018 by SRRF

Dear Sir,

We have registered trust and national level managing body, we want change our trust committee,we
have 14 members and 05 members are not giving their PAN and ADHAR CARD but this is necessary for ngo
darpan,registrar is telling for registered new trust,he will not change our trust committee,please guide
us.what we should do?

Udit Narayan Shukla

Posted in FCRA, TAX, LEGAL | 5 Comments

Sad News of passing away of Sh Vijay Sardana, Founding President of SRRF

Posted on March 30, 2018 by SRRF

Dear Dialogue Members,

With profound sorrow, I inform SRRF Dialogue members that Shri Vijay K. Sardana (Founder President of SRRF), has passed away yesterday morning (28/03/2018) after a brief period of illness.

Shri Sardana ji, 73, had devoted almost his entire life to the social development sector. He was an unassuming man but who was firm on principles of ethics & integrity in his day to day life. He worked tirelessly to improve governance practices in the social sector. He was one of the first to promote true partnership of NGOs among donor agencies. All of us are heart-broken at loss of his inspirational leadership, but vow to continue on the path guided by him.

His family has organized a prayer meeting in his memory on Saturday, 31st March 2018 at 4:00 PM. Venue: Arya Samaj Mandir, Jor Bagh, New Delhi.

May his soul rest in peace.

Ramanuj Maurya
Coordinator
__________________________________
Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
e-mail: socio-research@sma.net.in; website: http://www.srr-foundation.org

Posted in General | 24 Comments

Renewal of 80G

Posted on February 2, 2018 by SRRF

Dear Sir/Madam,

Our organization Education Resource Society, Uttar Pradesh has got 12 A and 80 G registration in 2008 and 80 G registration has been dead. We want to now renewal the same registration. Please guide us about processing and required documents and also send the link if possible online filling for renewal.

Thanks and Regards

Kamlesh

Posted in FCRA, TAX, LEGAL | 2 Comments

Transfer of funds from FCRA to Non FCRA A/c

Posted on January 25, 2018 by SRRF

I wanted your help with regards to a question I have on our FCRA account. ‎

We are a NGO in Bangalore catering to cancer patients in their last stages with free treatment.‎

We have a donor who funds us every year for a portion of the operating expenses ( Salaries and ‎Medicines) by remittance into our FCRA Account. ‎

Their cycle of funding is from 1st Oct to 30 Sep of every year. This year we received their funds late ie ‎only by December. So we met the expenses (medicines and salary and food) from our own rupee ‎donations in another bank. ‎

The question is whether we can now transfer the amount of those expenses from the FCRA account ‎to our rupee account in the other bank.‎

Would be very grateful if you could provide an answer. ‎

With kind regards

Yours Sincerely

Mathew Chandy

Posted in FCRA, TAX, LEGAL | 13 Comments

Are FCRA funds allowed for Corpus purposes

Posted on January 22, 2018 by SRRF

Dear Friends,

If a foreign entity wishes to donate to our Corpus, is that allowed under FCRA? If so, are there any special formalities to be followed?

A quick response will be much appreciated.

Thanks & regards,
Ruby

Posted in FCRA, TAX, LEGAL | 5 Comments

Implications if NGO not registered under 12A

Posted on January 13, 2018 by SRRF

Dear Friends

  1. Is it legally valid to provide a Grant-in-Aid to a Registered Federation of Self Help Groups for which 12A is Applied For and awaited.
  2. Funds are domestic in nature and raised by the Donor Organisation.
  3. Does the Donor organisation, another registered society, attract any Direct or Vicarious liability?
  4. Would the Donor organisation be violating any law,  if providing such a Grant and lose any of its registrations (Society registration, 12 A, 80G and such others).
  5. What Statutory/Tax liability would the Recipient organisation attract if it were to receive such a grant towards Capital Equipment Purchase and Start-up Capital for Income Generation Activity (Value Addition/Collective Livelihoods) among its constituent members.
  6. Is it correct to state that such Tax Liability would be attracted only if the Nett Profit (Income less Expenditure) is over Rs.2.50 lakhs in the corresponding Financial Year.

A quick revert would be excellent.

regards,

Rajeshwar

Posted in FCRA, TAX, LEGAL | 2 Comments

Migration of FCRA Bank Account with PFMS Compliant Bank by 21st January 2018‎

Posted on December 23, 2017 by SRRF

FCRA Department vide its circular dated 21/12/2017 has made it mandated all ‎individuals / organizations who receive contribution under the FCRA, 2010 to ‎migrating their designated FCRA Bank Account with the PFMS (Public Financial ‎Management System) compliant bank, as per list given below, by 21st January 2018. ‎(click for circular)
‎
List of PFMS compliant bank given below: ‎
‎1.‎ Abu Dhabi Commercial Bank ‎
‎2.‎ Allahabad Bank, ‎
‎3.‎ Allahabad UP Gramin Bank ‎
‎4.‎ Andhra Bank ‎
‎5.‎ Axis Bank ‎
‎6.‎ Bank of Baroda ‎
‎7.‎ Bank of Maharashtra ‎
‎8.‎ Bombay Mercantile Co-operative Bank Ltd. ‎
‎9.‎ Canara Bank ‎
‎10.‎ Catholic Syrian Bank Ltd. ‎
‎11.‎ Central Bank of India ‎
‎12.‎ City Union Bank ‎
‎13.‎ Corporation Bank ‎
‎14.‎ Cosmos Co-Operative Bank ‎
‎15.‎ DCB Bank Ltd. ‎
‎16.‎ Dena Bank ‎
‎17.‎ HDFC Bank ‎
‎18.‎ ICICI Bank ‎
‎19.‎ IDBI Bank ‎
‎20.‎ IndusInd bank linited ‎
‎21.‎ Jammu and Kashmir Bank Ltd. ‎
‎22.‎ Karur Vysya bank ‎
‎23.‎ Manipur state Co-op Bank ‎
‎24.‎ Oriental Bank of commerce ‎
‎25.‎ Punjab National Bank ‎
‎26.‎ South Indian Bank ‎
‎27.‎ State Bank of india ‎
‎28.‎ Syndicate Bank ‎
‎29.‎ Tamilnad Mercantile Bank Ltd. ‎
‎30.‎ UCO Bank ‎
‎31.‎ Vijaya Bank ‎
‎32.‎ Yes Bank ‎

All FCRA-holders / prior-permission holders must now keep their FCRA bank accounts ‎with one of these. They have been given time till 21st Jan 2018 to migrate their ‎designated FCRA Bank Account with any of the above. They should thereafter file ‎form FC-6 with details of the new bank account. ‎
‎__________________________________‎
Socio Research & Reform Foundation (NGO)‎
‎512 A, Deepshikha, 8 Rajendra Place, ‎
New Delhi – 110008‎

Posted in FCRA, TAX, LEGAL | 39 Comments