Rajput Jain And Associates

Rajput Jain & Associates

Chartered Accountants

An ISO 9001:2008 Certified Firm

My Regulatory Filing

FCRA Return Filing

FCRA ANNUAL RETURN FILLING

The organizations signed up under the Foreign Contribution Regulation Act need to keep separate accounts incurred under the FC head and send a return in the recommended format to the Ministry together with the audited statement of accounts of the previous year. Every organisation which receives foreign contributions is required to furnish a certificate from a chartered accountant. The certificate to be given by the chartered accountant is provided in Form FC-6. Along with this certificate, audited Balance Sheet, Income & Expenditure statement and the statement of receipt and payment account should also be submitted along with Declaration and authentication signed by Chief Functionary.

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The return is to be filed for every financial year (1st April to 31st March) within a period of nine months from the closure of the year i.e. by 31st December each year. Submission of a ‘Nil’ return, even if there is no receipt/utilization of foreign contribution during the year, is mandatory. The return is to be submitted, in prescribed Form FC – 6, duly accompanied with the balance sheet and statement of receipt and payment, which is certified by a Chartered Accountant. On the basis of the relevant books and vouchers, the chartered accountant is required to certify the following:

  • the brought forward balance of the foreign contribution at the beginning of the year.
  • the foreign contribution received during the year
  • the unutilized balance of foreign contribution at the end of the year
  • certify that the association has maintained the account of foreign contribution and records relating thereto in the manner specified in the Foreign Contribution (Regulation) Act, 2010.
  • the information furnished in the certificate and in the enclosed balance sheet , income & expenditure statement and statement of receipt and payment are correct.
Rajput Jain & Associates makes it easy for you: 
  • Send a email about your Queries & GET QUOTE immediately
  • Get detailed quote & document requirement list
  • Personal Call with our Business Consultant
  • Fill in 2 page Questionnaire
  • Get your FCRA Annual registered in Schedule working days assigned

How Rajput Jain & Associates works for your business
We build a simple and affordable platform for the common man and business to get world-class professional services

  • Save Time

  • No more travel. No more waiting in the queue.

  • Large Expert Team

  • Team of 150+ experts and growing rapidly

  • Online = Anytime

  • Access your request anytime anywhere 24 / 7

  • 70% Cheaper

  • Usually 70% cheaper than a comparable lawyer or CA in your city

Rajput Jain & Associates can help your FCRA annual return filling. Our experts can also help you FCRA annual return filling and maintain FCRA Act regulation compliance for your business.

Further we also provide the following services

To verify whether the associations are eligible to receive foreign contribution
To guide the applicant organization in submission of application for registration / prior permission
To guide the applicant organization in submission of application for renewal of registration
To assist in the proper maintenance of prescribed books of accounts in accordance with the provisions of FCRA, 2010 and FCRR, 2011.
To ensure that the returns of an association have been prepared in accordance with the provisions of FC(R) Act, 2010 and FCRR, 2011.

What Are You Waiting For?

  • CONSULTANCY SERVICES

  • We provide Ad-Hoc Consultancy onTDS, Services Tax, Income Tax, International Taxation on case to case basis.
  • As per the requirement of the client, consultancy can be followed by opinion in writing on the issues discussed.
  • Only opinion in writing based on the specific queries of the client.
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  • SERVICES ON RETAINER SHIP BASIS

  • Guidance over phone or email throughout the year.
  • Once in a month/ quarter visit to the client’s premises for test checking the records and solving on the job queries of the operating staff.
  • Draft Reply to the letter received from department.
  • Filing of Monthly/ Quarterly Returns On-line.
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  • INTERNAL, EXCISE, SERVICE TAX, TAX AUDIT

  • To carry out detailed Internal Audit or Compliance Study of the documents generated and records maintained and then submit the report consisting of ‘Financial Implications’, ‘Revenue Loss to the Government’ and ‘Procedural Lapses.
  • This will help to minimise the likely objections from the department during their audit
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  • OTHER RELATED SERVICES

  • Obtaining Central Excise and Service Tax Registration
  • Obtaining ‘Import Export Code Number’
  • In-House Training for operating staff on Excise and Service Tax.
  • E filing of Excise & Service Tax Returns.
  • Preparing Draft Reply for letters received from dept.
  • Handling Show Cause Notices received from the dept.
  • Read More

Frequently Ask Questions (FAQs) on Foreign Contribution Regulation Act

Foreign contribution has been defined in Section 2(1)(h) of FCRA, 2010. However, foreign contribution excludes earnings from foreign client(s) by an association in lieu of goods sold or services rendered by it as this is a transaction of commercial nature.

As defined in Section 3(1) of FCRA, 2010, foreign contribution cannot be accepted by any

  • a candidate for election;
  • Correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper;
  • Judge, government servant or employee of any Corporation or any other body controlled on owned by the Government;
  • Member of any legislature;
  • Political party or office bearer thereof;
  • Organization of a political nature as may be specified under Section 5(1) by the Central Government.
  • Association or company engaged in the production or broadcast of audio news or audio visuals or current affairs programs through any electronic mode, or any other electronic form as defined in clause (r) of subsection (i) of Section 2 of the Information Technology Act, 2000 or any other mode of mass communication;
  • Correspondent or communist, cartoonist, editor, owner of the association or company referred to in clause (g).
  • Individuals or associations who have been prohibited from receiving foreign contribution.

Two ways of registration under FCRA

Regular registration (Apply inform F.C 3)

Prior permissionregistration (Apply in Form F.C 4) -

  • Under this registration, there is no restriction (either the total amount or from specific donor) for receiving Foreign Contribution.
  • Regular registration certificate for 5 years under this registration, there is no restriction either on the total amount or from specific donor for receiving foreign contribution.
  • After five years, FCRA certificate must be renewed. This rule will be implemented from the year 2015. However, in both the cases it is compulsory to file annual return.
  • Under this registration, the permission is granted for a specific amount from a specific donor. A letter of intent from the donor to donate the amount must be enclosed along with the application form (Form F.C 1A).
  • Prior permission certificate which is possible after one year under this registration, the permission is granted for a specific amount from a specific donor. A letter of intent from the donor to donate the amount must been closed along with the application form.

An Organization in formative stage is not eligible for registration. Such Organization may apply for grant of prior permission under the law. Prior permission is granted for receipt of specific amount from specific donor for carrying out specific activities/projects. For this purpose, the association should:

  • be registered under the Societies Registration Act, 1860 or the Indian Trusts Act, 1882 or section 25 of the Companies Act, 1956; (ii) Submit a specific commitment letter from the donor; and
  • Submit copy of a reasonable project for the benefit of the society for which the foreign contribution is proposed to be utilised.
  • Should meet all the conditions for the grant of registration.

As per rule 8(1)(a), account has to be maintained for foreign contribution received in kind. Form FC-6 provides the format for recording the receipt as well as the utilisation of contributions received in kind. The entries made in FC-6 should correspond with entries made in Form FC-3.

No, FCRA does not impose any particular method of accounting. But it does have certain specific reporting requirements, which have to be complied diligently.

Every organisation which receives foreign contributions shall file an annual return in Form FC-3 under rule 8(2) within 120 days of the closure of the year.

The following should be submitted in duplicate duly signed by the chief functionary and certified by the chartered accountant:

  • Form FC-3,
  • Balance Sheet and statement of Receipt and Payment exclusively for foreign contribution received and utilised during the year.

If an organisation having FCRA Registration does not receive any foreign contribution, even then it should file nil returns. It is mandatory to file Form FC-3 every year as long as the organisation wants to validly retain its registration. The Ministry of Home Affairs (FCRA division) in its press notes dated 09.01.1998 has specifically clarified that even if no foreign contribution is received, filing of nil return is mandatory. In the same press note it has been clarified that non-submission of return in time or furnishing of false submission would constitute violation of the provision of the Act and attract penal consequences.

FCRA is silent about consequences for delay in filing FC-3. It can be construed that an NGO would stand the risk of losing the FCRA registration if it does not file returns properly but whenever an NGO is not able to file FC-3 by 31st of July, it should write a letter to the FCRA office explaining the circumstances causing the delay. Normally FCRA authorities condone such delay in filing of returns.

Delay in Filing FC-6 : FCRA is silent about consequences for delay in filing FC-6. It can be constructed that an NGO would stand the risk of losing the FCRA registration if it does not file returns properly but whenever an NGO is not able to file FC-6 by 31st December, it should write a letter to the FCRA office explaining the circumstances causing the delay. Normally FCRA authorities condone such delay in filing of returns. SO No, there is no such late filling penalty under FCRA Act. Before FC6, Organization having FC registration has to file FC3. However there is no such penalty for Late filling of either FC3 or FC6.

Last Date of Filling FC6 : As we aware Annual return of FCRA has to be filled before 31st December of following the financial year. e.g. for FY 201213, last date for filling FC6 is 31/12/2013. As many organizations are not enthusiastic to file FC6 return on time duration, which is 9 months after completion of Financial Year, Home Ministry has taken this kind of harsh decision to take penalty for such kind of delays. However new penal Provision has been introduced by notification:

Amount of Penalty as per Notification:

Delay in filling return

Amount of Penalty

Beofre 31st December

No Penalty

Up to 90 Days after 31st December(in case of non leap year – before 31st March and in case of leap year – before 30th March)

2% of Foreign Contribution received During the respected Financial Year OR Rs. 10,000 whichever is higher

From 91 Days to 180 days after 31st December(in case of non leap year – before 29th June and in case of leap year – before 28th June)

3% of Foreign Contribution received During the respected Financial Year OR Rs. 20,000 whichever is higher.

After 181 Days from 31st December(in case of non leap year – After 29th June and in case of leap year – After 28th June)

In this case there are two types of monetary penalties ONE 5% of Foreign Contribution received During the respected Financial Year OR Rs. 50,000 whichever is higher TWO Rs. 500 per day for each day after 181 days from 31st December.

NGO’s receiving foreign contributions should guard against violating the provisions of FCRA. The following are a few common offences, which aresubject to severe penalty and punishment:

  • I. NGO’s accepting foreign contribution without registration or prior permission.
  • II. NGO’s having FCRA registration but receiving foreign contribution in different bank accounts.
  • III. NGO’s having FCRA registration and not filing annual return in prescribed Form.
  • IV. NGO’s having FCRA registration filing false information in the annual return.
  • V. NGO’s with FCRA registration or prior permission not maintaining the required books of account.
  • VI. NGO’s receiving foreign contribution on behalf of other NGO’s not having FCRA registration.
  • VII. Not filing nil return in the year when foreign contribution is received.
  • VIII. Diversion of funds for the purposes other than for which they were received.
  • IX. Not maintaining the separate books of account
  • X. Mixing of Local funds with foreign funds.

To sum up the discussions: Violation of FCRA can attract severe penalties which could be as under :

  • (a) Seizure and confiscation of foreign contribution receipts.
  • (b) Fine upto 5 times the value of the foreign contribution spent.
  • (c) Inspection and seizure of accounts and records.
  • (d) Compulsory prior permission requirement even if the NGO is registered under FCRA.
  • (e) Imprisonment upto 5 years and/or fine.
  • (f) Prohibition on accepting foreign contribution for 3 years for persons convicted twice.

STEPS BY STEP PROCEDURE FOR REGISTRATION UNDER THE DELHI VAT ACT-

1. First of all, the dealer has to go to the official website of Delhi VAT by using following domain, i.e. www.dvat.gov.in

2. Then click on the link of “New Registration” available on the left side of the page.

3. After that, the dealer have to submit some basic details for PAN verification from NSDL, such as, Name of the Firm/Company, Constitution, PAN, Aadhaar No. and Contact details online.

4. On successful PAN verification, the dealer will be provided Username and password through e-mail for further process.

5. The dealer would login and fills up registration forms, i.e., for Local “DVAT-04” & for Central “Form-A” in which dealer have to submit details as mentioned below: -

  • Address of principal place of business;
  • Any additional place of business;
  • Bank details;
  • Particulars of persons involved in the Firm/Company;
  • List of Goods to be dealt in along with goods required for packing; etc.

6. And upload supporting documents such as ownership proof/rent agreement/NOC of landlord/electricity bill/telephone bill, address proof, identification proof, etc.

7. The size of respective documents should be less than 100 KB each in the format of pdf/jpeg.

8. If the size of documents gets greater than 100 KB, then the dealer can use various softwares, such as, Microsoft Office picture manager, Photoshop, Coreldraw, etc. to reduce the size to 100 KB or less.

9. Then go to the link of submission to submit the registration application with VAT department.

10. After submitting, the dealer will receive one e-mail consisting of temporary TIN and password which can be used for further transactions.

11. The Court fee of Rs. 1,025/- (w.e.f. 17.6.2014) for new registration will be submitted online.

12. After the whole procedure is approved by the VATI, the dealer can take out the print of online generated Registration Certificate and need not to go to Trade & Taxes Department.

13. Documents to be given to Vat Inspector at the time of his visit.

  • Copy of DVAT-04 Application,
  • Copy of Challan,
  • Photocopy of PAN card of Proprietor / Company / Firm / LLP (Originals to be shown),
  • Photocopy of PAN card of all Director's / Partner's (Applicable in case of Companies / LLP) (Originals to be shown).
  • Photocopy of Address Proof (Voter id or Passport or Driving License or Aadhar of Proprietor / Director's / Partner's) (Originals to be shown).
  • Cancelled Cheque.
  • Photocopy of Electricity Bill along with Rent Agreement / NOC (Originals to be shown).
  • Photographs of Proprietor / Director's / Partner's.

To sum up the discussions: Violation of FCRA can attract severe penalties which could be as under :

  • (a) Seizure and confiscation of foreign contribution receipts.
  • (b) Fine upto 5 times the value of the foreign contribution spent.
  • (c) Inspection and seizure of accounts and records.
  • (d) Compulsory prior permission requirement even if the NGO is registered under FCRA.
  • (e) Imprisonment upto 5 years and/or fine.
  • (f) Prohibition on accepting foreign contribution for 3 years for persons convicted twice.

Normal DVAT Registration:

DVAT Composition Scheme:

Delhi Value Added Tax or in short DVAT is a tax applicable on sale of goods within Delhi. Any person with turnover within Delhi exceeding Rs. 20,00,000 is required to be registered under DVAT and is liable to collect and pay DVAT tax to the Delhi Government. Further, any person purchasing or selling good from/to outside Delhi is also liable to be registered under DVAT in addition to registration under Central Sales Tax Act (CST).A person can also apply for voluntary DVAT registration with or without CST even if he is not required take compulsory registration.

DVAT Composition scheme is a easy version of DVAT introduced with DVAT Act for easy compliance by small businessmen. This scheme is applicable to small dealers only i.e. dealers with turnover less than Rs. 40 Lakhs (Rs. 40,00,000). Further, the dealer should only Purchase or Sale goods within the state of Delhi only.

Applicability of DVAT Composition Scheme

  • Turnover of Dealer should not exceed Rs. 40 Lakhs (Rs. 40,00,000)
  • The dealer should exclusively sell / purchase goods within the State of Delhi