Restrictions on Political Activities for NGOs

Dear Members,

Under which section of the IT Act, Indian Trust Act and FCRA 2010, a registered Public charitable Trust is prohibited to influence/fund the political activity ?

Looking forward to receiving your opinion.

Regards,

Shekar

Posted in FCRA, TAX, LEGAL | Comments Off on Restrictions on Political Activities for NGOs

Is FCRA required for foreign individual Donors?

Hi,

We are a very small org working using sports to combat gutkha addiction among slum youth.

A lot of school and college mates settled out of India would like to donate sums like U.S. $ 100 or U.K. L 100.

Is FCRA neccessary for amounts as low as this too ?

Jamshed Chinoy
Saamarthya Foundation

Posted in FCRA, TAX, LEGAL | 4 Comments

Filing of FCRA (FC-6) Retrun

Dear Sir/Madam

Kindly let us know if FC-6 pertaining to FY 2011-12 is to be submitted manually & online both or only manual filing is sufficient.

Regards
Anutam

Posted in FCRA, TAX, LEGAL | 9 Comments

FCRA Order quashed by High Court

To the anguish of all those NGOs whose FCRA registrations have been cancelled. We bring to you some hope. Madras High Court has quashed FCRA cancellation orders of two NGOs, Rural Uplift Centre and Good Vision, both based in Kanyakumari, Tamilnadu. Please see the attached report published on 13 November in The Hindu newspaper.(click to read)

Please note this judgment appears to be against specific orders issued by the FCRA Dept. to these NGOs (after inquiry ordered by Ministry of Home Affairs in foreign funding of NGOs involved in Kudankulum agitation) and not the general cancellation order of July 2012 impacting almost 4200 NGOs. However it is felt that this will come as a big relief to all those affected by the authoritative order of the FCRA Dept. Main ground for quashing the orders is denial of natural justice to the two NGOs. In fact though many organisations, who got affected by this order, but preferred not to go to the court, could still consider to go to the court, since FCRA authorities got emboldened by non-aggressive attitude of these NGOs and their representative bodies.

–          Credit is given to Shri VK Shivakumar, Chartered Accountant, for bringing the news item to the attention of SRRF Dialogue editorial Team.

Posted in FCRA, TAX, LEGAL | 1 Comment

Counting the Homeless in Delhi

As per a study titled ‘Homeless Survey-2010’ undertaken by UNDP, the official estimate of number of homeless people living without any shade or shelter in Delhi stands at 55,955. Unique Identification Authority of India has also accepted the survey for giving Aadhar numbers to the homeless.

Based on this report, Govt. plans to formulate its policies for providing shelter and possibly skills to such persons for earning their livelihood. So far govt facilities cover only 12,000 homeless people. Further, the condition of these shelters was not good too, as they had been very susceptible to incidents of fire. Moreover they are overcrowded and have very bad living conditions.

However several NGOs have disputed the figures put out by the study. They say the study was undertaken during 2010, when a large number of homeless were driven out of the city on account of Common Wealth Games. For example, Ashray Adhikar Abhiyan, which runs a number of homeless shelters in the city and IGSSS, state that the study has not covered many lanes and bylanes, where a number of such persons can be found. IGSSS had undertaken a survey in 2008 and they counted more than 88,000 people. They also insist that for every person counted they would have missed one person, as they could not go to all the bye-lanes of the city. They insist in all probability the Homeless in Delhi would be in the region of 150,000. Their argument seems to have some logic, that it is not possible for any agency to undertake a 100% headcount of population in such a large and diversified city.

In a recent order Supreme Court has directed all the states, particularly the northern states, which have extreme weather conditions to take action on priority basis in creating Night Shelters for such persons. Quoting Article 21 which dels with fundamental right of life and liberty, SC stated that ‘right to shelter’ is also covered by Right to Life and that it is the duty of the Govt ‘to preserve and protect’ the lives of homeless and destitute. It asked that Delhi Govt should provide at least around 160 night shelters.

Posted in Urban Governance | Comments Off on Counting the Homeless in Delhi

Service tax and NGos

Hi,

We (GVNML organization having state registration that is 1958, society and 12 AA ) also and we had did IEC activities (community participation in drinking water supply to 265 villages) we need to pay service tax. We are getting payments from Govt. (PHED Deptt.) as contractor. Are we under service tax? Pls guide me.

Regards

Jagveer Singh

Posted in FCRA, TAX, LEGAL | 3 Comments

Sludge to run buses in an environmentally clean way

Ambitious as it may sound, but Delhi plans to run its buses on biogas produced from waste and dirty sludge. After CNG, the national capital is all set to run its public transport fleet on biogas!!!  Although, Delhi already boasts running the world’s largest fleet of vehicles on CNG, the latest endeavor would be great as it would be cost-effective and a win-win solution.

Presently one of the major problems is management of sludge coming out of Sewage Treatment Plants (STPs). While treating this sludge, Delhi Govt plans to produce bio-gas at Keshopura STP, which is of high quality and can be compared with CNG. The STP, functioning partially at present, can treat 72 million litres of wastewater per day. The bio-gas produced from sludge treatment would be used as a complementary fuel for running 120 CNG buses. This is a pilot project and subsequently, if successful, there will be expansion.

The technology for this process is being provided by Swedish government. This innovative step would be a great way to achieve energy conservation and it would further also reduce 10,000 tonnes of carbon dioxide per year.

Posted in Environment | 1 Comment

TDS on International payment for NGO

Dear members,

We have also a query on TDS on  International transaction/payment .

Our organisation has  FCRA & 12A Certificate.  If any funder (abroad) has deducted any TDS from our payment . What is the remedy  to claim that TDS amount in India

Usually, we receipt against project funds/consultancy fee/ research work.

Request all of you, kindly clarify us.

With kind regards,

L N Sharma

 

Posted in FCRA, TAX, LEGAL | 1 Comment

Trusts/societies and Companies Act-section 25

Dear Friends,

Given the resource crunch, NGOs/CSOs have to think of earning for serving. So as not to get entangled in Tax web, some of them are planning to go for separate body under (not- for-profit) Companies Act-25. They can’t afford to have a separate CEO for the Company which is supposed to spare surplus money earned for running the Charitable NGO. Do the rules permit one CEO heading both the Charitable NGO and the not-for-profit Company. Few of the Governing body members of the NGO could be on the Board of the Company for safety.
If a common CEO is permitted, what precautions should be taken? Can terms like “Trade” be used by such a Company?
Please advise.

Uday

Posted in FCRA, TAX, LEGAL | 1 Comment

Service tax liability for NGO

I have a query on service tax payment & registration:-

Our organization has got 12 AA registration.

For the car hiring charges/security charges do we need to register ourself for the service tax and do we need to pay the reverse charges or as per notification /circular no:25 we are exempted from service tax

Could u please clarify?

Cheers,
Ramya Haricharan

Posted in FCRA, TAX, LEGAL | 4 Comments