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

Cash payments of more than Rs 20,000 prohibited by FCRA Department

FCRA Dept has come out with a Circular dated 21st October 2014, as per which that NGOs utilizing funds out of their FC Designated accounts and FCRA Utilisation Accounts must utilize these funds through account payee cheques or through demand drafts. Any payments made in cash could result in scrutiny.

Thus please bring it to notice of all NGOs (share on facebook by clicking send link) that you are associated with to shun cash payments to the extent possible, but certainly no payments above Rs 20,000 should be made in cash.

You can access the circular from the following link:                                                   http://www.srr-foundation.org/circulars/fcra_notification_21-10-14.jpg

__________________________________
Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Telefax: 91-11-25722044, 25821088, 25817157
e-mail: socio-research@sma.net.in; website: http://www.srr-foundation.org

Posted in FCRA, TAX, LEGAL | 1 Comment

New Ideas required for improved learning at Schools

While everyone acknowledges the success of enrollment achieved (as high as 96% in some states), however most of us are also aware of the decline in learning standards in India, which ASER survey identified (earlier covered by SRRF visit http://blog.srr-foundation.org/?p=1646 ). There have been a few experiments undertaken by NGOs in Gujarat, which could provide indicators on how the problem could be tackled. These have been covered in an article published recently in Indian Express.

First the context, ASER survey identified that in rural Ahemdabad 41% in classes I & II are unable to read letters or words, and 35% cannot recognize numbers 1-9. The ASER Report also identifies that children in private school were much better off. For example, it found that while in Govt schools only 13% of Class III could subtract, in private schools it was 34%. Some have argued that comparing govt schools with private is not fair, since private schools being more expensive, normally would attract students from more educated and privileged background.

Hence a comparison for 2009-2010 was made between non-formal free schools run by an NGO called Gyanshala in slums of Ahemdabad and schools run by Ahemdabad Municipal Corporation (AMC). In similar tests for language and mathematics Gyanshala students scored 80 out of 100 while AMC students scored only around 60. However for non-standard questions (for which students were not tutored) difference was huge (70-80% for Gyanshala students and 20-30% for AMC students).

Gyanshala’s instruments for reaching these results include hiring of 12th pass students and train them intensively for 30 days annually. Further they are regularly supervised and supported by a dedicated team and curriculum regularly updated. This keeps teachers motivated and students also eager to learn.

Perhaps there is a lesson in this for education authorities on how to find innovative solutions. Perhaps CSR professionals need to identify how their programmes could help in filling these gaps in government school programmes, rather than running their own schools for a larger impact.

  • Based on an Indian Express article dt. 20 Sep 2014Schooled Against Innovation

___________________________________________

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 Education | Comments Off on New Ideas required for improved learning at Schools

STATUS OF S.25 COMPANIES UNDER NEW COMPANIES ACT 2013

Dear Sir:

I have a two-fold query regarding Sec 25 Companies under the Companies Act of 1956 (now presented as Sec 8 Companies under the Companies Act 2013):

1. Do existing Sec 25 Companies have to re-register under Sec 8, or are they subsumed under the new law, and treated as Sec 8 Companies by extension? I ask, because the existing licenses clearly note that the company is registered under Sec 25 of the Companies Act). Do Sec 25 Companies now automatically stand converted to Sec 8 Companies – and if yes, what is the documentary evidence of this that the Company needs to produce or quote?

2. How does the changed wording regarding remuneration to members impact Sec 25 companies?

Compare Clause 6 of the Sec 25 license which says:”Noting in Clauses (3), (4) and (5) shall prevent the payment by the company in good faith, with the previous approval of the Central Government, of reasonable and proper remuneration to any of its members in return for any services (not being services of a kind which are required to be rendered by a member), actually rendered to the company;” and Clause 5 of the new Sec 8 license, which reads: “that nothing in clauses (3) and (4) shall prevent the payment by the company in good faith of prudent remuneration to any of its members in return for services (not being services of a kind which are required to be rendered by a member), actually rendered to the company.”

I especially note the crucial dropping of “with the previous approval of the Central Government” and the substitution of “reasonable and proper remuneration” by “prudent remuneration”.
Any comments would be deeply appreciated!

(5) that nothing in clauses (3) and (4) shall prevent the payment by the company in good faith of prudent remuneration to any of its members in return for any services (not being services of a kind which are required to be rendered by a member), actually rendered to the company;

Warm regards,
Ramakrishnan

N.Ramakrishnan
Ideosync Media Combine
H.No.1381, Sector 37
Faridabad – 121 003
Haryana – India

Posted in FCRA, TAX, LEGAL | Tagged | 3 Comments