Transferring funds to foreign accounts

Posted on February 11, 2021 by SRRF

We have the following query –

Can a charitable Trust having 80G and 12AA certificates, transfer funds into a vendor’s foreign account for services rendered outside India, but for a project in India? Would it flout any conditions of the grant of 12AA or 80G? The vendor could be an NRI with no account in India – or the vendor could be a foreign citizen.

Thank you

Ruby Kamdin
Director
One Billion Literates Foundation

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One Response to Transferring funds to foreign accounts

  1. Subhash Mittal says:
    February 12, 2021 at 11:51 am

    Making payment to a foreign vendor is nothing more than import of services or goods. As long as services are for the purposes of NGO and contribute towards achieving these purposes, any expenditure incurred would be treated as application of income generated by the charitable entity. So in plain words – no problems, just ensure services are for your Indian activities.

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