S. 80G applications

Posted on October 24, 2011 by SRRF
Dear Asif,

I am sorry for rather delayed reply.

Though intention of the legislature is quite clear that 80G exemption is
now available in perpetuity till withdrawn by the Dept., however our experience
for getting this exemption in perpetuity is as varied as the number of states
(and sometimes even within states).

To be on the safe side, it is suggested that please get apply for getting
S. 80G exemption renewed and get an order from the dept. which states that it is
renewed in perpetuity till withdrawn. This is the safest.

Cases where dept. is not accepting renewal application should take it in
writing from the concerned oficer that it is not required.

rgds

subhash mittal

Posted in FCRA, TAX, LEGAL | 2 Comments

Human Rights Violation may appear in companies’ annual report

Posted on October 21, 2011 by SRRF

Ministry of Corporate Affairs is in the process of drawing up new requirements regarding the inclusion of human rights issues into the wider corporate responsibility framework. The proposed guidelines would call on companies operating in India to submit an annual report to the government documenting their record on human rights, alongside evidence of their efforts to minimize violations.

Companies operating in India will be encouraged to comply with the new guidelines despite the fact that they are likely to be voluntary. The Ministry of Corporate Affairs will require companies who do not submit their human rights records to explain their non-compliance under the strategy of “apply or explain”.

Disclosure of human rights violations will serve as a positive deterrent to companies failing to ensure basic human rights along their supply chain. Companies that report incidences of human rights violations will be faced with reputational risk, thus promoting efforts to ensure adherence and the inclusion of human right monitoring within wider corporate compliance practices.

Companies that fail to perform due diligence along their supply chain will risk complicity in abuses with potential legal and reputational implications. In the long-term, increased scrutiny of corporate practices may help to reduce the frequency of human rights violations, making the investment climate more favourable for responsible businesses.

Although risks are that corporates which do not conform, possibly would not report non-compliance, since their does not seem to be any counter-check mechanism, but of course as an initiative it is better than nothing.

____________________________________
Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Tele/Fax: +91-11-25821088, 25817157, 25722044
e-mail: socio-research@sma.net.in

Posted in Corporate Governance | Comments Off on Human Rights Violation may appear in companies’ annual report

Employees Provident Fund

Posted on October 14, 2011 by SRRF

Dear Sir/Madam,

We are a registered Society. We have a high school with about 40 workers and are paying their due including the EPF, etc. However there are other employees such as driver, watchman, extra clerical staff, domestic help who look after the children etc. How do we pay these employees? will they have to be included in the Employees Provident Fund and added along with the staff of the school – even when they are not really staff directly of the school but of other works relating to the Society. We have a service benefit fund and the amount and the amount is deposited in a separate bank account month after month. Are we right in doing it or the 20 employees/10 employees rule apply also to us.

As a registered body do we have to pay according to the minimum wage act. Where could I get the details for the 4 states of Goa, Gujarat, Maharashtra and Karnataka specially for the class of driver, domestic help, helper etc. thanking you in anticipation My email id is meena.fma@gmail.com

Meena D’Silva

Sr. Meena D’Silva FMA
Auxilium Centre
Plot No. 84, St.Andrew’s Road
BANDRA, MUMBAI-400 050
PH:(022) 26559605

Posted in General | 4 Comments

Is it necessary to form a trust to opening a nursery school

Posted on October 14, 2011 by SRRF

I have a query on issue ” is it necessary to form a trust for opening a school”, my one of friend wants to start a nursery school with in our residence compound. Is it necessary to form a trust to Opening a nursery school ? Can he start it as a private organisation or otherwise to minimize the compliance ? Please suggest me for the same in detail.

Regards,

Pushkar

Posted in General | 3 Comments

Section 25 Company

Posted on October 14, 2011 by SRRF

HI All,

Can a section 25 company after its formation apply for FCRA registration to MHA?

If yes, does it need to satisfy of RS. 10,00,000 expenditure ( turn over) in its balance sheet?

—

Regards.

Ranjit Paik,
Freeset Bags & Apparel Pvt. Ltd

172 Ramesh Dutta Street, Kolkata-6
033- 40705187 (0), 90621 66577 (M)
www.freesetglobal.com, SKYPE:ranjit.paik

Posted in FCRA, TAX, LEGAL | 7 Comments

Pilot project replacing PDS with Direct Cash Transfer to start from Delhi

Posted on October 7, 2011 by SRRF

Delhi Government is about to be the first to start pilot project in Central Delhi District replacing the much maligned PDS system with Cash Transfer Policy.

Ministry of Consumer Affairs, Food and Public Distribution has sought a grant of Rs 242 crore from Finance Ministry to run a pilot for the cash transfer scheme in five villages – (i) Lakhimpur Kheri (UP), (ii) Hardoi (UP), (iii) Panchkula (Haryana), (iv) Jhajjar (Haryana) and (v) Central Delhi.

Under the policy Antyodaya cardholders will get Rs. 1,100 per month, while BPL cardholders will get Rs. 950 per month whereas, Rs. 250 per month to a category of above poverty line cardholders (whose Income level is below Rs 1 lakh per annum). Proposal also provides for quarterly review of these amounts based on rise in prices of essential commodities. Under the scheme the funds will be directly transferred into the accounts of female head of the family and is likely to be linked to Adhar cards.

However the scheme for replacement is not without its critics, most notably Jean Drez, the economist who also happens to be on NAC, who feels that the argument for Cash Transfer rather than PDS is not so simple. A survey undertaken by his organization has found that people still prefer old PDS than the new system. He has advised caution to PM while implementing Cash Transfer Scheme.

____________________________________

Socio Research & Reform Foundation

(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Tele/Fax: +91-11-25821088, 25817157, 25722044
e-mail: socio-research@sma.net.in
 
 
 
 
 
 

Posted in Governance Reforms | 3 Comments

RESOURCE MOBILISATION- GIVING BY INDIVIDUALS IN INDIA

Posted on October 4, 2011 by SRRF

It is an established fact that the foreign funding is coming down in India. Raising concerns of a large number of NPOs, particularly the ones relying on such funding, on how they could continue with their activities. SRRF has always believed that there is a need for the Sector to start generating resources from within the country. SRRF, alongwith Deepalaya, held a week-long training programme last year on how to enhance resource mobilization by Sponsorship Programmes. SRRF continues to believe that there is tremendous scope for individual giving in India.

This belief has been supported through a report entitled ‘India Philanthropy Report 2011’ brought out by Bain & Company. The report comes out with some revealing facts. It also perhaps is an indicator for NPOs on which way lies the future path for resource generation. This is so apt during this Joy of Giving week. Some excerpts from the report are highlighted.

Till 2006 total giving was only around 0.6% of GDP, of which only 1/3rd came from individuals & corporate, i.e. only 0.2% of GDP. Rest was mainly from foreign funding. However the report states that in 2010 private funding from corporate and individuals has risen to 0.3-0.4% of GDP. Of this 26% share is from individuals only. A dramatic increase over earlier years.

Future potential for giving by individuals can be gauged from the fact that in US which raises around $ 304 billion (2.2% of GDP) in private charity, 81% is mainly from individuals. In UK which raises around $ 29 billion (1.3% of GDP), 75% is from individuals and corporates. Brazil raises around $ 5 billion (0.3% of GDP). China raised around $ 11 billion (being 0.2% of GDP), 86% being from individuals & corporate. In India private donations were around $ 5-6 billion (being 0.3-0.4% of GDP). GDP wise India’s contribution from corporate and individuals was higher than that of Brazil or even China.

What gives hope for raising resources in India from individuals is that ‘High Net Worth Individuals’ in India are rising at a much higher rate than any of the other economy anywhere – more than 50% between 2008 & 2009. Contributions by Indian individuals come to around 1.5-3% of individuals’ annual income, compared to around 9% in US.

Major reasons cited as obstacles for raising the resources are lack of Transparency & Accountability in the NPOs and unfriendly tax laws for donations. However it is believed that contributions from Individuals will rise significantly in years to come and NPOs which prepare themselves now for these challenges will do well (or perhaps survive).

____________________________________

Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Tele/Fax: +91-11-25821088, 25817157, 25722044
e-mail: socio-research@sma.net.in

Posted in General | 1 Comment

Food Safety and Standard Act 2006

Posted on October 3, 2011 by SRRF
Today what we eat is so much prone to contamination at any point of Food Chain. Often referred to as Farm to Fork, major risks in this chain could be identified as pesticide overuse, irrigation by untreated sewage water, poor sanitation at food markets or even faulty cold storage. In case of Indian scenario one could add the retail part of it.

The Government has now notified a new Act Food & Safety Standard Act 2006 replacing the old and ineffective Prevention of Food Adulteration Act.

The new Act is using a multi-level approach of strengthening the monitoring and heavy fines. For example now penalties for adulteration have been enhanced upto a maximum of Rs 10 lakhs compared to just Rs 500/- to Rs 5000/- earlier. Earlier the cases were presented in the court of Chief Judicial Magistrate, which often resulted in delays. Now initially the judicial powers have been given to the Food Commissioner to be specifically appointed in each state. Cases have to be decided in a time bound manner.

However for our health, let us hope (keeping fingers crossed) that the latest legislative changes do work and improve the quality of food that comes to our tables.

____________________________________

Socio Research & Reform Foundation

(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Tele/Fax: +91-11-25821088, 25817157, 25722044
e-mail: socio-research@sma.net.in

Posted in Health | 2 Comments

Technology- Mobile Wallet soon to be a reality

Posted on October 1, 2011 by SRRF

Soon all of us who are used to payment by credit card may have to get used to paying using our mobile phones. Already legal framework is in place to facilitate the same. A customer can transfer up to a maximum of Rs 50,000/- from his bank account to a mobile wallet (till recently this limit was up to Rs 5000/- and has since been enhanced).

How does it work? In case of Corporation Bank, which has recently launched m-wallet scheme, it goes like this. A customer who applies to use this scheme would install a special installation on his/her mobile. When a customer goes to a shop or a restaurant and decides to make a payment, s/he would log on the application and enter the amount to be paid. An automated generated barcode would appear on the screen, which the merchant would scan using his own mobile phone camera. The amount gets debited to the m-wallet.

Even those who do not have installation based m-wallet can use sms-based m-wallet services. Seeing huge opportunities, many big names have already jumped into the fray, including ICICI Prudential, Birla Sun Life, Reliance Energy and e-commerce portals such as eBay India, HomeShop18, BookMyShow and RedBus.

Apart from being just a convenience, RBI also considers that in time m-wallet could turn out to be an answer to financial inclusion challenges that planners have been facing for long time. For example, govt could transfer cash directly to the m-wallets of beneficiaries, thus overcoming the problems of distances in accessing the banker services. Of course before the Government could take it up on a large scale it would need to resolve a number of practical challenges.

____________________________________

Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Tele/Fax: +91-11-25821088, 25817157, 25722044
e-mail: socio-research@sma.net.in
Posted in General | 1 Comment

Water Conservation

Posted on September 30, 2011 by SRRF

In 2000 Delhi High Court order followed by a notification by the Union Ministry of Urban Development (MoUD) had made it mandatory for all buildings with a discharge of more than 10,000 liters of water per day to recycle water for non-potable purposes.

However the Delhi Govt did not take any action despite having a High Court order till 2009, when Delhi Jal Board cut down supply of water to 30 such establishments by half. It asked all such buildings (mainly malls, schools, etc) who consumed more than 12 Kilo litres water per month, to have their own water recycling and waste-management systems.

Even Planning Commission while approving Delhi’s annual Plan had raised concern about areas within Delhi which are over-exploiting underground water and suggested to develop a budget for creating better water facilities for next decade.

____________________________________

Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Tele/Fax: +91-11-25821088, 25817157, 25722044
e-mail: socio-research@sma.net.in

Posted in Urban Governance | 1 Comment