FCRA Renewal

Dear Friends,

I would like to know if the renewal application for FCRA has to be made online or manual. Also, there is a deadline of April 30, 2015 prescribed for filing the renewal application but is there a stating date as well. If no such date is there, kindly let me know by when the NGOs can start applying for renewal.

Thanks and regards,


B V Soma Sastry

Posted in FCRA, TAX, LEGAL | 3 Comments

Filing of FC-6 Return – Points to remember

Many of you would be busy in filing of your FCRA Annual Return (FC6) since due date of 31st December is fast approaching. To facilitate the same, we provide some important points that you find useful for correct filing of FCRA return.

  • Most important all organisations whether one has received foreign contribution or not must file FCRA returns. That means even if you have not received FCRA funds still file NIL return.
  • Must ensure that return is filed within due date otherwise there will be penalties, even in case of nil returns penalties are being levied.
  • File online return. We have put up a detailed guideline for filing of online return, alongwith screen shots and what you have to do on that screen. Click for more details.
  • Before filing the return, one will need to prepare FCRA financial statements (Balance Sheet, Income & Expenditure & Receipt & Payment account). The FCRA Act does not prescribe any specific method of accounting, thus it is discretionary to the Association to shown the utilization either on actual payment basis or on Accrual Basis. Since the purpose of these accounts is to facilitate preparing of FC6 return, even ICAI recommended policies would not be applicable on FCRA accounts to be submitted to the FCRA Dept.
  • Whatever method you follow make sure that the Bank balance as per accounts is in agreement with what is shown on the FC6. This will avoid unnecessary questions subsequently by Dept. in case of any queries.
  • Under Part I of the FCRA online Return, overall figures are to be given.
  • Under Part II please note detail addresses are required to be given where utilization has taken place. Please use this option and ensure that your return includes details of the places where activity has been conducted. There are no limits on the numbers and you can use this option for as many locations as required.
  • Make sure you take a printout of the draft return before clicking on Final Submit and verify the return. Only once you are convinced about the correctness of the Return please submit the same to the Dept.
  • Once final submission made, take printout have it signed by the Chief Functionary and submit it to the Dept. alongwith following documents;
  • Accounts (Balance Sheet, Income & Expenditure, Receipts & Payments Account),
  • Bank statements of designated account signed by bank official
  • Chartered accountant certificate

If you require any support you can contact at – 9350184168.

__________________________________
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 | Tagged , | 6 Comments

Grant as Work Order – Implications

Dear Friends,

NGO is receiving funds from a PSU for doing development work. This fund is part of the CSR initiatives. The amount is not given as a grant but in the form of a work order/consultancy. What implications will it have on the NGO receiving such funds?

Please provide your inputs on the same.

Thanks and regards,

B V Soma Sastry

Posted in FCRA, TAX, LEGAL | 4 Comments

General Body Approval needed?

Dear Sir,

I would like to seek clarification whether FCRA requires prior project approval from the general body of the organisation before sending it to the prospective donors.

Thanks & Regards,
Preeti


Coordinator – Admin & Accounts
HAQ: Centre for Child Rights
B 1/2, Ground Floor
Malviya Nagar
New Delhi 110017

Posted in FCRA, TAX, LEGAL | 4 Comments

What is return form for Assets purchased from FCRA fund

What is the return form ( FC-6 or FC-7 ) for Fixed assets purchased from FCRA  fund ? What is the last date to file the FCRA annual return and Fixed assets return.
Ashok Mishra
SNS Foundation
Posted in FCRA, TAX, LEGAL | 3 Comments

Clarification on service tax – Where is service receiver located abroad?

Here is an opinion on Service tax. I am quite confused. Could someone throw more light on the subject? What exactly is the right interpretation?

“Services to foreign organisations may not be chargeable to service tax in some cases. To understand this, let’s take an example.

A foreign entity has retained you to provide advisory services in India. You visit and advise their grantees / partners in India, and report back to the client. The foreign entity does not have an office in India. Therefore, your contract is signed with the main office. Your fees also come from abroad. Will this be chargeable to service tax?

No. In most cases, service tax is now charged based on location of the receiver of services. In this case, the receiver is located abroad. Therefore, this service is not taxable. It does not matter that the service is actually performed in India.”

Would be grateful for a response and guidance

Joe D’Souza

Posted in FCRA, TAX, LEGAL | 2 Comments

Is revision of FC-6 possible?

Dear Sir
A NGO (already registered under FCRA) has received funds (INR) from a Foreign Bank having operations in India for the purpose of sustainable development of an area.
These funds have been received from Mumbai branch of that bank and not routed through FCRA bank account and 80% already utilized during 2013-14. The FCRA return already filed for 2013-14.
Whether these are to be treated as contributions under FCRA and what is the remedy now for correcting this mistake.

Thanks
Vikas Gupta

M.Com, FCA

Posted in FCRA, TAX, LEGAL | 7 Comments

Engagement of foreign citizens in NGOs/Board

Dear Sir,

This is to obtain a clarification as to whether –

1) Foreign nationals can be enrolled on to the Governing Board of NGOs who are foreign contribution recipient.

2) Similarly, whether foreign nationals can be appointed to a position of Chief Executive/Executive Director to the NGO who is foreign contribution recipient and can be paid remuneration.

Thanks & Regards,

T.K.Mathew
Secretary & Chief Executive
Deepalaya
46, Institutional Area, D-Block, Janakpuri
New Delhi-110 058

Posted in FCRA, TAX, LEGAL | 3 Comments

More information about 80G and S.35 AC

Dear Sir,
I have some doubts about the 80 G receipts and the IT 35 Ac and 35 i, i & ii.

What is the limit of the receipts under the 80 G.
What is the relevance of the Indian IT exemptions for the foreign donors.
Please share your comments.

Mohankumar

CADRE- India
(Center for Action Development Research and Education in India)
Kurumathoor, Kuzhithurai, PO, Kanyakumari, Dist. Tamil Nadu. India. PIN. 629163

Posted in FCRA, TAX, LEGAL | 2 Comments

NGOs and their overseas operations

Diwali greetings to SRRF colleagues!

Writing with a request for some guidance:

As part of one of our research studies, we are looking at Indian CSOs engagement with development cooperation. We have interviewed CSO voices some of who mentioned difficulties in terms of CSOs getting involved overseas to engage with development cooperation (in partnership with other agencies). In this regard, two specific queries were:

  • Does the FCRA limit or prevent Indian CSOs from establishing subsidiary offices overseas? If so, in what way? Are the limitations strictly in terms of income tax liabilities?
  • What does the Income Tax Act/ Direct Taxes Code state with regard to the above issue?

Would be most grateful if someone could throw some light on this?

Best wishes,
Pooja


Pooja Parvati
Research Manager, Oxfam India

Posted in FCRA, TAX, LEGAL | 1 Comment