Final chance for renewal of FCRA Registration

Giving a final chance, the Government has decided to ask more than 11000 NGOs who’s FCRA was not renewed since their applications were not filed online by 30th June to submit fresh application for the renewal of FCRA Registration.

The FCRA department is sending emails and in case mobile number is available, SMS to all these NGOs to provide the necessary documents along with complete application to home ministry to get their registration, granted under the Foreign Contribution Registration Act (FCRA), renewed.

A total of 11,319 NGOs lost their foreign funding licence as they failed to renew their registration within stipulated deadline of June 30 this year.

After the Centre’s decision to cancel registration of these NGOs, the number of outfits permitted to receive foreign funding has come down to around 19,000. Till two years ago, the country had around 42,500 FCRA-registered NGOs.

However details how NGOs should approach the Government are still awaited.
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Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
e-mail: socio-research@sma.net.in; website: http://www.srr-foundation.org

Posted in FCRA, TAX, LEGAL | 9 Comments

Tax calculation in case of public trusts without 12A registration?

Dear Team

We have few general queries

1.How is taxable income & the amount of tax payable calculated in case of public trusts without 12A registration ?

2.If a public Trust without 12A has Total donation received Rs. 4 lacs .

i) What is the taxable income and amount of tax payable if expenditure is Rs. 3 lacs and balance is 1 lac ?

ii) What is the taxable income and amount of tax payable if expenditure is Rs. 4 lacs and balance is nil .

Thanks
Minakshee

Posted in FCRA, TAX, LEGAL | 4 Comments

Demonetization & NGOs

Dear Sir,

We need to have your advice about whether, we, as an NGO, Could be allowed for a limited period, under the recent De-Monetizing move of the existing currency of Rs.500 and Rs.1000 by the Govt. of India.

We, as an NGO, in the Chattisgarh state, keep receiving the membership fee, etc. from various districts of the state, as per the declaration mentioned in our bye-laws. Now, as, the membership fee amount had already been collected by our volunteers in different districts of the Chhattisgarh State which consists of considerably huge numbers of Rs.500 and Rs.1000 currency, which has recently been de-monetized by the Govt. of India.

Anyway, we, as an NGO with the network in all the districts of the Chhattisgarh-state, along with all our board members, designatories, volunteers and beneficiaries, welcome and support the move.

Now, The problem with us, as an NGO, is related to the information & knowledge, about the legality of making deposit into the bank. Please let us know, whether, we could deposit the money, received as the membership fee from our female-beneficiary-members, mentioning the receipt numbers with date of receipt; and also could we seek formal-permission by our Banker or RBI, regarding the issue, mentioning the limit of the total deposits, to be made during the permitted-period, like December 30th 2016.

Seeking your authentic advice in this matter, urgently…….

Thanks…


With Regards,
Tapash Chatterjee
Secretary & CEO
MITAAN SEWA SAMITI [NGO]
MITAAN EMPOWERMENT FOUNDATION [NPO]
Near Shiv Mandir, Hardware Line,
Supela, BHILAI–490023,
Chhattisgarh, India

Posted in FCRA, TAX, LEGAL | 9 Comments

Advance payment to staff from FCRA Account

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

Posted in FCRA, TAX, LEGAL | 2 Comments

Can an INGO branch office employ foreigners?

Dear Members,

I am a member of SRRF group.

“Can a branch office in India of an INGO can hire Foreigners on their roles”

Thanks for your support and will wait for your revert.

Best Regards,

Amit

_________
Amit Gulati

Posted in FCRA, TAX, LEGAL | 1 Comment

International organizations which shall not be treated as foreign source

FCRA Department has further enhanced list of International Donors (foreign source) which are exempted from FCRA vide its ORDER NO. SO 3210(E) [F.NO.II/21022/23(07)/2015-FC-III], Dated 17-10-2016.

These organizations are as follow:

  1. South Asian Association for Regional Cooperation Disaster Management Centre (SDMC);
  2. Global Fund for Disaster Risk Reduction (GFDRR);
  3. Asian Disaster Reduction Centre (ADRC); and
  4. Asian Disaster Preparedness Centre (ADPC).

This now means that there now 113 foreign source organization which are exempted from FCRA.
____________________________________
Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
e-mail: socio-research@sma.net.in; website: http://www.srr-foundation.org

Posted in FCRA, TAX, LEGAL | Comments Off on International organizations which shall not be treated as foreign source

Can grant be made to foreigners?

Dear Members,

I am writing on behalf of India Foundation for the Arts, a grant making organization using FCRA and Indian funds. I would like to know whether we can make grants as per the legal provisions in India.

  1. “Can foreign nationals be a principal researcher/grantee in case of a grant made to a non profit organization registered in India”?
  2. Can grant be made to PIO and OCO card holders?

Looking forward to your valuable opinion.

Regards,

Shekar

Posted in FCRA, TAX, LEGAL | 4 Comments

Tax Treatment of Funds Accumulated

Our NGO has saved non-specific donations in FDs for a ‘rainy day’. Some have exceeded 5 years and we are now told that we have to pay 45% in taxes for under-utilization of funds and if we delay the process it will be 90%. How are we supposed to be self sustaining if this is the case?

Aziza Tyabji Hydari

Posted in FCRA, TAX, LEGAL | 9 Comments

Treatment of assets on completion of FCRA projects

Dear Members,

In a Society registered in Lucknow under the Societies Registration Act 1860 some assets have been purchased in projects under FCRA . On completion of the project the society has been allowed to retain these assets by donors. What would be the treatment of these assets in the books of Society and how is it to be presented in the balance sheet of the Society as a whole.

With Thanks & Regards

CA Rajeev Sharma
B.Com. F.C.A.D.I.S.A.(ICA)
Rajeev Siddharth & Associates
Chartered Accountants
308 Sahara Shopping Centre
Faizabad Road
Lucknow 226 016

Posted in FCRA, TAX, LEGAL | 3 Comments

CSR Funds Foreign or Local

Dear Members,

We are an NGO working on sustainable energy, sustainable agriculture and waste management. An Indian company with 53% foreign holding is offering funds to one of our projects. Please advise whether do we need to treat this as foreign contribution or as an Indian contribution?

Best Regards,

Vidya Sagar Devabhaktuni
President, SKG Sangha
“Mandara” 3rd Main,
Muneshwara Nagar, Antharagange Road
KOLAR – 563 101
Karnataka State, INDIA

Posted in FCRA, TAX, LEGAL | 1 Comment