Socio Research & Reform Foundation

We are all aware of problems that NGOs are facing trying to raise resources from foreign sources to fund their activities. On the other hand the Government is liberalizing receipt of foreign funds in other sectors.

For example, it has allowed Indian companies to raise foreign currency loans for meeting expenses towards its general corporate purposes. Even in the education sector, Ministry of Human Resource Development, being the administrative ministry for formulation of policies for the education sector, has sent a proposal to the Department of Industrial Policy and Promotion and Department of Economic Affairs to permit foreign universities to open their campuses in India.

The above indicates the dichotomy of Govt. policies, where they are liberalising receipt of foreign funds in the commerce but tightening screws for the civil society sector.

This indicates how much FCRA is out of tune with the times.

_____________________________________________
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

Dear Members,
Greetings from SRRF!!!

Following query received from Mr. Ajaya on the topic “Bangladesh NGOs Legal Compliance”. Kindly provide your responses.

Dear Friends,

We are implementing projects in Bangladesh and need some information. Can anybody help me out what are the legal compliance applicable for Bangladesh NGOs. As we have in India FC-6 and IT Return what do Bangladesh NGOs have?

Thanks

Ajaya

Dear Friends,
Greetings from CWS!

We are facing a typical problem with the PF department on which I would like to seek your advice. CWS functions with its partners i.e. it sub grants funds to other organizations. Under the current circumstances the PF field officer came for an inspection. He is of the opinion that CWS is responsible for the PF of the partner organizations. Kindly help me out on this and also if any case laws are there on such issues.

Thanks and regards,
___________________________
B V Soma Sastry
Director – Finance and Admin
Centre for World Solidarity
12-13-438, Street No. 1,
Tarnaka Secunderabad 500 017
Andhra Pradesh

Following query received from Mr. Sunil Kumar Suryavanshi of SAMARTHAN CENTRE FOR DEVELOPMENT SUPPORT.

Dear Sir

IT department provide ITR-7 online filling facility from this year. Some point are confuse to us as below:

PART A-GEN

d) Details of the project/institution run by you- ?

there is confusion : which project/institution, own fund project or all project which are funded by another donor.

SCHEDULE FA

Details of foreign assets

a)     Bank : which bank, FCRA fund bank or bank places in outsight of India ?
b)    Interest: ?
c)     Investment in immovable property: which assets, which are purchased from FCRA fund or assets located outsight of India ?

Kindly give your valuable suggestions to help us for filling ITR-7

With Regards

—————————————
Sunil Kumar Suryavanshi
Accounts Department
SAMARTHAN CENTRE FOR DEVELOPMENT SUPPORT
36, Green Avenue, Chuna Bhatti, Kolar Road,
Bhopal M.P. 462 016
www.samarthan.org

Dear Dialogue Members,
Greetings from SRRF!!!

A query has been rec’d from an NGO running an orphanage in southern India. It is a society registered under Tamilnadu Societies Registration Act of 1975. An inspection was undertaken at the orphanage by ESI officials, who have claimed that orphanage is employing 12 full time staff and 7 part-time staff and have demanded that organisation pays its Contribution as per Regulation 31 of ESI General (Regulation) of 1950. The orphanage has very meagre resources and pays its staff like Aya, cook, etc. amounts ranging between Rs 2500 to Rs 7000.

I request learned members of the SRRF Dialogue Group to advise

1. Is ESI applicable on non-profit organisations ? If no, please provide the basis of your opinion.
2. If yes, how can it minimise liability, does it have to pay full ESI contribution even on part-time staff?

Your expeditious advise would help the NGO take a proper recourse.

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

Dear Dialogue Members,
Greetings from SRRF!!!

Following query received from Mr. Subodh of BRLP.

Dear Sir,

I am from a Govt Society . People from foreign country like Indonesia / Bangladesh want exposure visit of our society. We have to facilitate them for accommodation / vehicles / community resource fees etc. They want to send all reimbursement cost as per budget in project account.

What is our statutory obligation for accepting reimbursement cost from foreign countries. Please update us with reference of concerned act and its provisions.

With regards

Subodh

Dear Dialogue Members,
Greetings from SRRF!!!

Following query received from Mr. Vidya Sagar Devabhaktuni of SKG Sangha.

Dear Sir,

This is an NGO registered under the societies registration act. We have the following doubts:

1. When we receive foreign funding for any project we may not spend the money immediately after receipt in many cases. We get some bank interest if we keep these funds in Bank Fixed Deposit until we need the money. The bank deducts TDS if the interest is more than Rs.10,000/.
2. Is there a way to see that the bank does not deduct TDS as our society is registered under section 12 A of Income tax Act like giving form 15G etc?
3. If the bank deducts TDS on bank interest how to treat this in our accounts?
4. Can we claim back this amount from Income tax department as our organisation is registered under section 12A?

Looking forward for some practical solutions.

Best Regards,

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

Dear Dialogue Members,
Greetings from SRRF!!!

We have received following query from Mr. Sudhendu Das of SSDC:

Dear Sir,
Greetings from SSDC!

if  we generate corpus fund in our national account for use any accident or serious cases in future, it will be taxable or not.

waiting for your valuable replay.

Regards

—
Sudhendu Das
Finance Manager
Sundarban Social Development Centre
Vill. – Polerhat, P.O.- Bijoygunj Bazar,
Dist. – South 24 PGS
Pin – 743343
West Bengal, India