A NGO has FCRA, running a Training Center (Build out of FC amount), any organisation wants to organise training at this place out of the FC project activities. Need guidance how to book this income in books of account at training center and how to book the expenditure at training organiser NGO. Please guide for further process.
Thanks
Kamlendra
This is the precise situation, which present law has created a kind of situation, which makes definition of Foreign Contribution (FC) topsy turvy. As per law, all income generated out of FCRA funds should be treated as FC. Now can you imagine you going to banker with a cheque from Ram Singh & Sham Singh of Rs 1000/- each, saying this has to be deposited in FCRA A/c. Banker will not allow, as Ram Singh & Sham Singh, who are Indian citizens, living in a small town have never even been to any foreign country, how we can define them as foreign source. But FCRA laws require all incomes generated from any assets created out of FC to be treated as FC, and hence deposited in FCRA Bank A/c. So you would need to deposit these amounts to FCRA A/c. You will face challenges from your bankers, but you will need to find a solution for the same.