Query- FC Money

Posted on March 22, 2012 by SRRF

Dear Friends,

I have a problem on hand from one of the partners and the problem goes like this:

1.       Donor gave Rs. 20000/- in cash during the visit to the partner. The money was not put in the FC account and was spent towards the medical costs

2.       Later transferred Rs. 110000/- to the designated bank account.

3.       A separate agreement was sent to the partner showing this as “Cost for Treatment”

4.       Now the donor wants a receipt for Rs. 130000/-

 

My point is:

1.       How do we treat this is FC books

2.       What will be reflected in FC-6 to be filed this year

 

Please respond.

 

Thanks and regards,

______________________
B V Soma Sastry
Centre for World Solidarity
12-13-438, Street No. 1, Tarnaka
Secunderabad 500 017
Andhra Pradesh
www.cwsy.org

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5 Responses to Query- FC Money

  1. Colombowala Zulkef says:
    March 27, 2012 at 12:19 pm

    If Rs. 20000/- received in last year and treated as local a/c and accounts were audited and final accounts are filed with concerned govt. department, then we could not change the nature and two separate contract and receipts is the possible solution.

  2. Colombowala Zulkef says:
    March 25, 2012 at 3:29 pm

    money received from a foreign source, whether in India or outside India, whether in Indian currency or foreign currency is considered as foreign contribution.

    NGO could issue receipt for 130000/- stating the Rs. 20000/- received in cash and Rs. 110000/- received threw bank transfer

  3. Subhash Mittal says:
    March 24, 2012 at 2:00 pm

    Dear Soma,

    This is a typical problem, which often several practitioners of FCRA face. Obviously once Rs 20,000/- cash has not been deposited in the FCRA account, then there can never be a correct treatment. We can only try to minimise the risks. From what you say, it appears that you have to submit a fresh agreement / receipt for Rs 130,000. Once done, you will need to ensure that original amount of Rs 20,000/- earlier treated as local is shown as FCRA utilisation.

    For inital spending of Rs 20,000/- in your local books, you pass an entry showing this as an advance against this FCRA project. Pass an entry in FCRA books of Rs 20,000/-
    as utilisation. In case you require any further clarification, pl contact.

    very warm rgds

    subhash

  4. Furgan Khan says:
    March 24, 2012 at 8:29 am

    1. Might Wg. Commnder is asking is Rs. 20, 000 has been taken in local a/c and Rs. 1,10,000 in FCRA. or my question is suppose last year Rs. 20,000 he has taken in local a/c and now Rs. 1,10,000 in FCRA A/c and donor also ask audited UC, Will we gave 2 UC one from local or waht?

  5. Wg Cdr SS Roychoudhury says:
    March 23, 2012 at 9:54 am

    The donor is justified in asking for a receipt but in case the money is coming from foreign countries than no IT exemption certificate is permitted.

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