Dear Members,
I would like to get expert opinion on the following case: can quote the clause if mentioned in the FCRA 2010.
Can petty cash (less than INR 5,000) be redeposited at the impressed/utilization bank account every month; the cash was withdrawn from the same bank account.
Looking forward to hearing from you,
Ajaya Paik
You have to withdraw funds that you required and spent within a week. If any remaining balances you can carry forward for next week or month. A huge of amount of withdrawl and keeping for several months or weeks or not permitted. Yes, of course, you can redeposit in the UTILIZATION BANK, not main DESIGNATED BANK.
Multiple Donors funds from out side of India, Interest earned by banks, funds gone wrong entry or wrong transactions by Bank, Assets sold from FC funds and Fixed deposit can be the only possible.
Assets are to be sold out in consulting with your auditor who will verify and issue the certificate that the assets have purchased from the FC funds and with that letter and Only one cheque of sold out property can be deposited in the Bank.
I agree with Abhishek, that only FCRA funds can be deposited in Utilisation A/cs. which in itself should come from designated account. However if for any reason, FCRA withdrawn is no longer required for the purposes, intended, same may be deposited in the Utilisation A/c, including advance to staff, advance to vendor, refund of security deposit, etc., including any cash withdrawn earlier and no longer required.
Dear Ajaya Paik Ji
In my opinion, if you have withdrawn the amount from Sub-Utilisation account then you can deposit the same in that particular account. Because there is a restriction in law for the deposition of Non-FC fund in that account. Reproducing the language:
Proviso 2 to Section 17(1)
“provided that no funds other than that foreign contribution shall be received or deposited in such account or accounts”.
Hence, in your case, you are depositing the FC fund only hence you can do so.