Advance payment to staff from FCRA Account

Posted on October 28, 2016 by SRRF

Dear Members,

I wish to know if any advance can be paid to staff for his/her foreign visit on an invitation by foreign donor for meeting/workshop under FCRA or not?

Regards

Jagdeep Kakkar

This entry was posted in FCRA, TAX, LEGAL. Bookmark the permalink.

2 Responses to Advance payment to staff from FCRA Account

  1. Jiwan Prakash Saha says:
    October 28, 2016 at 5:54 pm

    Dear Mr. Jagdeep,

    Yes , you can pay the advance as per your organization policy from FCRA funds. Generally advances are paid @75-80% of anticipated cash expenditure so that balance can be paid after submission of travel expense details. Hope it will help.

    Regards,

    Jiwan

  2. Rajeev says:
    October 28, 2016 at 2:40 pm

    Though orgs like FMSF and others say that you cannot give it to staff as advance as the Act states transfer from FC account can either be to another FCRA entity or directly expensed. As the transfer to employees is not direct spend it violates the principal. However I am of the opinion that if that be so it’s practically impossible to conduct normal business. You can follow this if you are fully automated where you take care of all expenses which an employee incurs during travel etc. including petty expenses. It’s too difficult. I believe we can give advances in normal course but keep this to minimum possible level as it is not only best practice to transfer funds directly to service providers but also avoids unnecessary advances and problematic settlements. In cases your org is engaged in anything which goes against govt policy it’s best to avoid unless it’s absolutely essential which you cannot do without.

Comments are closed.