Socio Research & Reform Foundation

Dear Sir,

I am a frequent visitor of your blog SRRF. It is a great source of resources. Couple of times I interacted with you through emails and even posted some questions and answered for others’ queries too.

In the light of new form FC4 for filing annual returns introduced by FCRA in the place of F6 which is being focused on Administrative Expenses apart from other distinguished features, we need some clarification with regard to it.

Say an organization has Informal Literacy Program. And the structure of human resource involved in it is in this manner –

1. Adult Learners (the beneficiaries who gets basic reading writing skills)
2. Adult Education Teacher (a volunteer who teaches in a center with 20 Learners and gets monthly honorarium)
3. Project Manager (a volunteer who oversees 5 centers and gets monthly honorarium)
4. Field Coordinator (a staff working full time with the organization, collecting reports and training 40 centers as and when required and gets monthly salary)
5. Head Office work force (staff on full time basis paid salaries regularly)

Now, my question is among the above 5 whose costs are considered as administrative expenses?

• As per rule 5 (ii) of FCRA whether 4 & 5 costs are considered as Administrative Expenses? Or
• As per rule 5 (ii) of FCRA whether 3, 4 & 5 costs are considered as Administrative Expenses? Or
• As per rule 5 under provision 1st Para which talks about “training or collection”, only Sl. No.5 costs need to be considered as administrative expenses?

Looking forward for kind and expert opinion.

With thanks and regards,

Prasanna Kumar

FEEDBACK REPORT
Legal Compliance Workshop for NGOs
[Thursday, 17th December 2015, India International Centre (Annexe), 40 Max Mueller Marg, N. Delhi – 3]

Dear Friends with a special Hello to all the Participants who attended the workshop.

We thank all the participants who attended the workshop which was one of the most interactive workshop organized by SRRF so far. Credit for this goes to all the participants, who engaged the faculty and remained focused throughout the day. Through this communication we share your feedback and other details that we promised during the workshop.

The Feedback forms have been compiled and collated. There were 60 participants, 63% of whom have given their feedback. Feedback required scoring for each session as well as for overall workshop. The feedback gives score of 85% for the overall workshop. A chart of session-wise results is given below.

Some participants have also given suggestions to organize this workshop at various places and enhancing the duration as well as covering several other topics. We will consider all your suggestions to further improve.

We have also uploaded the presentations of the workshop at our website including snaps. Please visit SRRF website to get access to the same. http://www.srr-foundation.org

We have also uploaded the snaps of the participants on SRRF facebook page. https://www.facebook.com/srr.foundation/.

Once again I thank you on behalf of SRRF, on being part of a wonderful and learning ‘Legal Compliance for NGOs’ workshop.

With warm regards

Ramanuj Maurya
Coordinator
__________________________________
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

Annual Return filing date extended to 15th March 2016
Vide a notice of 22nd December 2015, FCRA Dept has extended filling date of Annual Return (now under FC4) to 15th March 2016.

This has been done to allow FCRA users to become used to new rules as well as to allow time to stabilise to new online website. (click for related circular)

Changes in online FC4 Form (Annual Return)
In addition, it is observed that now Investment in Fixed Deposit has been disabled under Utilisation column. So investment in FDs would not be treated as Utilisation. This was pointed by several persons that how one could treat investment in FDs as Utilisation, and was causing a lot of confusion.

This indicates that the form is currently being debugged and possibly the reason for extending the annual return filing date.
___________________________________
Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
e-mail: socio-research@sma.net.in

Dear Memebrs,

I wish to have a clarification on the following:

We have a FCRA account with UCO Bank, Abids Circle Branch, Hyderabad. But the branch does not deal with Foreign exchange. UCO Bank, Banjara Hills branch deals with foreign exchange and transfers to our account get routed through it.

Due to core banking, our account number will remain the same even if we get our account transferred to Banjara Hills branch. Can we get the account shifted to Banjara Hills branch without the formal approval of Ministry of Home affairs or do we require its approval?

Regards,
Ramamohan Rao Kakani
Secretary
BREAD Society,

Dear Sir,

Can you please clarify if service tax is applicable on assessments that are being provided by the various organisations to the schools for assessing their students?

The latest circular states :

(i) Education:
At present, all services provided by educational institutions [providing educational services specified in the negative list] to their students, faculty and staff are exempted [section 66 D (l) of the Finance Act, 1994]; this will continue. However, in respect of services received by such educational institutions, presently, exemption is being operated through the concept of „auxiliary educational services‟ [Sl.No.9]. Doubts have been raised and clarifications have been sought regarding the scope and meaning of „auxiliary educational services‟. To bring clarity, it is proposed to omit the concept of „auxiliary educational services‟ and specify in the notification, the services which will be exempt when received by the eligible educational institutions. Accordingly, the following services received by eligible educational institutions are exempted from service tax: (i) transportation of students, faculty and staff of the eligible educational institution; (ii) catering service including any mid-day meals scheme sponsored by the Government; (iii) security or cleaning or house-keeping services in such educational institution; (iv) services relating to admission to such institution or conduct of examination. Further, for the purposes of this exemption, „educational institution‟ is being defined in the exemption notification 25/2012-ST as institutions providing educational services specified in the negative list.

It may be noted that the scope of exemption remains the same as earlier in the case of services provided by eligible educational institutions; in the case of services received by the eligible educational institutions, exemption will be available only in respect of the services specified as above.

Thanks
Ratna

Dear Friends,

Please let me know if Section 8 Companies can have shareholders? If yes, please update me on the related aspects.

Thanks and regards,

—
B V Soma Sastry

Dear sir/madam,

Pl include my following queries in your group mail so we get the answers needed.
1. Is it now still valid and mandatory to get a Digital Signature for filing IT returns for a Charitable Trust?
2. If yes, who can help us get this digital signature?
3. Whether CA only has to file IT returns or Trusteed/Trust can do the same, whether online or submit hard copy offline??
4. We need someone to help us file this year’s and previous year’s IT returns for our Trust as well as auditing of accounts annually.

We are based in Thane.

Thanks and blessings,
Sincerely,

A.Othniel, President
Calvary Centre Trust,
Thane
98920 93534.
www.calvarycentre.in

Dear Members,

SKG Sangha is an NGO working in the fields of sustainable energy, sustainable agriculture and waste management. As party of our projects, a software company has come forward to fund one of our energy projects. Whereas the company wants to give us the funds as a contractor. Once the funding company the NGO as a contractor for implementing the development project they have to deduct TDS. What are the tax matters involved in such a case?

Regards,
Vidya Sagar Devabhaktuni
President, SKG Sangha
#532, 2nd Main Road, Gandhi Nagar,
KOLAR – 563 101
Karnataka State, INDIA

Dear Members,

We are a section 25 company, having 80G and 12A exemptions, we have been asked by NACO to technically support and organize two workshops on given themes, and NACO had directed us to reimburse the amount with 10% organizational fee, please advise us can we charge service tax on this or we may be exempted from service tax.

Regards
Neeraj Kumar Sinha
____________________________________________________
Neeraj Kumar Sinha |Finance & Administrative Officer
H-5(Ground Floor), Green Park Extension | New Delhi, India 110016