Category Archives: FCRA, TAX, LEGAL

Foreign Contribution Regulation Act

Recent case law adjudicating on applicability of Service Tax to Non Profits

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 … Continue reading

Posted in FCRA, TAX, LEGAL | 2 Comments

Deregistration from PF

Dear all 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 … Continue reading

Posted in FCRA, TAX, LEGAL | 1 Comment

Is advocacy permissible from FCRA funds?

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 … Continue reading

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Precautions on Online Acceptance of Foreign Donation

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 … Continue reading

Posted in FCRA, TAX, LEGAL | 6 Comments

Service Tax on Security Services

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 … Continue reading

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PF Coverage for NGOs

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. Regards, Sridharha

Posted in FCRA, TAX, LEGAL | 10 Comments

Service Tax on Grant

Dear Members, 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 … Continue reading

Posted in FCRA, TAX, LEGAL | 4 Comments

Income arising from Foreign Contribution

Dear Sir, 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 … Continue reading

Posted in FCRA, TAX, LEGAL | 4 Comments

Fund Account Treatment – Clarification

HI, 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 … Continue reading

Posted in FCRA, TAX, LEGAL | 2 Comments

Some recent case laws on Charitable institutions…

Deemed provision under S.12AA is not automatic and would need to be followed with a writ Recently Allahabad High Court (Full Bench) has ruled that non-disposal of an application for registration before the expiry of six months as provided u/s … Continue reading

Posted in FCRA, TAX, LEGAL | 1 Comment