Socio Research & Reform Foundation

Dear Members,
Greetings from SRRF!!!

Responding to several requests for Earthquake Relief to Nepal, CBDT has come forward in fast tracking the procedure for giving approval for any NGOs wanting to spend money in that country. Vide a press release CBDT has promised to give approvals  within 2 days. Normally the process is quite a long one and takes anywhere from 3-4 months.

All those NGOs interested may contact CBDT website for the procedure to be followed. We have also provided copy of instructions on our website at following link:

http://srr-foundation.org/circulars/permission-under-section-11-1-c-28-04-2015.pdf

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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

Can we deposit donations received in foreign currency from NRIs in cash or by cheque from a foreign bank in normal account of NGO or it has to be deposited in FCRA account only? Please advise.

Thanks.

V.K.Kalsi

Dear sir,

The NGOs are exempted from PF coverage till 31st March, 2015, a notification was published on 14 May 2010 by Ministry of Labour and Employment. Notification is attached here with for ready reference. After that there is no news if this exemption is extended for any period.

It is very important that many NGO were taking benefit of this notification now the question comes that these NGOs have to register with PF department ? or should wait for extension of notification? click here for PF notification

Arvind Kumar

Is there any rule under FCRA Act which prohibit relatives to be the part of an Executive Board Committee of an NGO/Society/ Charitable Organisation/ Trust. Am looking for details in this regard.

Ambreen Khan (Ms.)

Dear Members,

We (Nettur technical training foundation) is a registered not for profit organisation registered with Income tax commissioners and covered under section 11 and 12 of the IT act.

With respect to our assessment we have different views taken by different assessing officers.

As per the act we presume that 85% of the gross receipts should be spent on capital and revenue expenses to avail full exemption in a financial year.

1. For one year both capital and revenue expenditure and depreciation was allowed for arrive at 85%.
2. Next year depreciation was disallowed ( a clarity on this was given in the finance act 2014 , stating depreciation will not be allowed)
3. In the next year the gross receipt was clarified as cash basis and not on mercantile basis.
4. Now we get an assessment order stating that the 85% should be on net profit before depreciation and not on gross receipt ( reason stated by the assessing officer is that there is a departmental circular to this effect)

The subject is rather leading to confusion year after year.

Kindly give your opinion and views.

Regards
Louis

As intimated earlier through SRRF Dialogue, FCRA renewal for certain FCRA registered organisations are due, a Table is given below to help identify Due Date for renewals.

Although when the FCRA Act was made effective, FCRA Dept had explained that the application would need to be submitted online, however since the Dept has not put this application online, it is suggested that based on above dates FCRA Renewal application should be submitted.

PROCEDURE:

• Application Form – FC5 can be downloaded from the FCRA website. For convenience a copy can be downloaded from SRRF website. Click Here
• Fill the form.
• Attach copy of original FCRA registration certificate.
• Advisable to attach copy of any approvals taken for change of address, change of bank account, change in trustees, etc.
• Attach a Demand Draft or Banker’s Cheque of Rs 500/- in favour of ‘Pay and Accounts Officer, Ministry of Home Affairs’. The DD / banker’s cheque should be payable at New Delhi.
• Send all the above documents, properly indexed and under a cover letter on the Letterhead of the Association by SpeedPost to The Secretary, Ministry of Home Affairs, FCRA Wing / Foreigners Division, NDCC-II Building, Jai Singh Road, New Delhi 110001.
• Please retain the receipt of dispatch as well as one complete copy of your renewal application.

SRRF has a Helpline to help organisations who face problems in applying. Helpline No. is 9350184168.

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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

Hello,
My name is Uma and I am writing on behalf of an educational NGO based in Chennai. We have been operational since 2007 and we are providing Montessori education to the under priviledged children by adopting the local balwadis.

As we are looking to expand, we are looking for external resources for funding and the first question which comes up is the registration certificate. The trustees of this organization executed the trust deed on non-judicial stamp paper and we do have the copy of the trust deed. We are also registered under the section 12AA of income Tax and getting 80G exemption as well since 2008.

Now we applied for the FCRA application and the lawyer is saying that the trust is not registered and asking for the registration certificate.

1. Is execution of the trust deed on stamp paper not considered as registration ?
2. What is the registration certificate ? how do I find this ?
3. If we need to do the registration, will our history of the work be considered for evaluation ?
4. Is there a way to find out whether our trust is registered ? if so, where ?

Can somebody provide a clarification on this ?

Sincerely,

Uma
Nishkam Chennai

Dear Friends,

Under the provisions of the FCRA 2010, any change in the Board members in excess of 50% shall be made with prior permission. This does not technically apply to organizations registered prior to 27th December 1996 as there was no declaration signed by the organization this effect while applying for registration.

The query/doubt that I have is that the prior approval for the nomination of Board members is to be sought when the 50% change occurs “over a period of time” or “at any given point in time”.

Thanks and regards,

—
B V Soma Sastry