Please visit the link for the details
http://jan-sampark.nic.in/jansampark/images/campaign/2016/18-Nov/MyGov/images/Newsletter_English.pdf
http://jan-sampark.nic.in/jansampark/images/campaign/2016/18-Nov/MyGov/images/Newsletter_English.pdf
NGO Consultant
Odisha NGO Consultancy Services
Monday, November 21, 2016
BSNL launches digital online education
BSNL has launched an education service in partnership with M/s Probit Plus Pvt. Ltd in AP and Telangana circles. Known as ‘BSNLECLASS,’ it is aimed at providing uniform quality education for both urban and rural students at affordable costs under Ekranthi project of Government of India. The programme seeks to improve competitive skills of students of Andhra Pradesh and Telangana circles. For details, visit BSNL website www.bsnleclass.in
NGO Foreign Funding – FCRA
Context:
GoI in the recent past has banned many NGOs-both domestic and Indian arm of foreign NGOs on the pretext of violation of FCRA
Why?
GoI in the recent past has banned many NGOs-both domestic and Indian arm of foreign NGOs on the pretext of violation of FCRA
Why?
Many of them were found to be violating some provision of the act in some manner, for example Greenpeace India was banned for exceeding the cap on administrative expenditure.
Many NGOs were put on MHA’s watch list on request of the state government, e.g. Ford foundation was put on watch list on request of Gujarat government.
Pros of government actions:
Many NGOs were put on MHA’s watch list on request of the state government, e.g. Ford foundation was put on watch list on request of Gujarat government.
Pros of government actions:
It will help in countering activities which are detrimental to the economy. E.g. It is suspected that UK based groups are funding agitation against Kudaikunal power plant which is very crucial to energy need.
Will help in bringing transparency to finances of such NGOs and their activities. Out of 22 lakh NGOs only few filed tax return last fiscal year.
Cons of government actions:
Cons of government actions:
Government can use these provisions to stifle NGOs which are against its policies.
Ford Foundation, Green Peace International etc. have substantial influence in international arena and thus it may impact India’s image.
What is the current practice in regulation of NGOs?
· NGOs are regulated under FCRA and FEMA. The Home Ministry monitors foreign funds donated to NGOs and organisations through the FCRA. And, FEMA is regulated by the Finance Ministry.
· Currently, there are nearly 100 international NGOs and associations which receive foreign funds through their liaison offices and disburse them to NGOs across India. Few international donors are registered under FEMA but not the Foreign Contribution Regulation Act (FCRA), 2010.
· Many NGOs and foreign donors do not want to register under the FCRA due to its stringent provisions.
What Home Ministry wants?
The Home Ministry has asked the Finance Ministry to surrender its powers to monitor non-governmental organisations (NGOs) under the Foreign Exchange Management Act (FEMA). This move is aimed at bringing all NGOs which receive foreign contributions under one umbrella for better monitoring and regulation. It will help in better regulation of such funds.
Other Issue:
Foreign Firms can now fund political parties
What happened?
The government has admitted that the amended Foreign Contribution Regulation Act (FCRA), 2010, which they brought in through the Finance Bill route, will not only help foreign-origin companies to fund NGOs here but has also cleared the way for them to give “donations to political parties.”
Response from Opposition
This is subversion of democracy, the FCRA amendment was brought in through the Money Bill route and passed without any discussion in Parliament.
This reflects the government’s authoritarian character, it will only fulfil the agenda of certain people
Source: http://www.ias4sure.com/wikiias/gs2/ngo-foreign-funding-fcra
Ford Foundation, Green Peace International etc. have substantial influence in international arena and thus it may impact India’s image.
What is the current practice in regulation of NGOs?
· NGOs are regulated under FCRA and FEMA. The Home Ministry monitors foreign funds donated to NGOs and organisations through the FCRA. And, FEMA is regulated by the Finance Ministry.
· Currently, there are nearly 100 international NGOs and associations which receive foreign funds through their liaison offices and disburse them to NGOs across India. Few international donors are registered under FEMA but not the Foreign Contribution Regulation Act (FCRA), 2010.
· Many NGOs and foreign donors do not want to register under the FCRA due to its stringent provisions.
What Home Ministry wants?
The Home Ministry has asked the Finance Ministry to surrender its powers to monitor non-governmental organisations (NGOs) under the Foreign Exchange Management Act (FEMA). This move is aimed at bringing all NGOs which receive foreign contributions under one umbrella for better monitoring and regulation. It will help in better regulation of such funds.
Other Issue:
Foreign Firms can now fund political parties
What happened?
The government has admitted that the amended Foreign Contribution Regulation Act (FCRA), 2010, which they brought in through the Finance Bill route, will not only help foreign-origin companies to fund NGOs here but has also cleared the way for them to give “donations to political parties.”
Response from Opposition
This is subversion of democracy, the FCRA amendment was brought in through the Money Bill route and passed without any discussion in Parliament.
This reflects the government’s authoritarian character, it will only fulfil the agenda of certain people
Source: http://www.ias4sure.com/wikiias/gs2/ngo-foreign-funding-fcra
Demonetization and NGO – Dos and Don’ts
We know the current scenario of demonetization of old currency notes of Rs. 1000 and Rs. 500. As every day new news coming in, it is difficult for us to decide what should be the correct step to deposit old notes.
Earlier, Trust and NGOs were already under the radar of the Government before demonetization, now we can predict that more strict control coming in near future.
Let us discuss today about dos and don’ts by NGOs in a Question Answer Round.
Q – Can old notes be deposited in NGOs Bank Account and what is the time limit?
A – Yes, old notes can be deposited in NGOs Bank Account till December 30.
Q – How much cash can be deposited?
A – As such no limits, but not more than the CASH ON HAND AS ON 8th NOV.
Q – Can we take cash donation in Old notes now?
A – No. After 8th Nov, old Rs. 500 and Rs. 1000 notes are not valid tender.
Q – Can we take donation in cash in back dated and thus create more cash balance as on 8th Nov?
A – I suggest NO. Just two days back, not confirmed but, IT (Exemption) of Mangalore has issued notices to NGOs to submit authorized copy of cash books as on 8th Nov with denomination.
Q – Can we deposit cash in FC in old notes?
A – Yes you can deposit old notes in FC account but not more than cash balance of FC books as on 8th Nov. I suggest if the cash balance is not much amount get it exchanges with new notes.
Q – What about staffs advance already given before 8th Nov in old notes?
A – Do not take bake the advance and deposit in the Bank. It is advisable to ask staff members to exchange it.
Q – What about Donation boxes lying outside the offices like at airports, malls etc..?
A – Immediately get all the donation boxes back and record its cash on books as donation and keep photographs before and after opening of boxes or record a video at the time of opening of boxes with the current date newspaper. So that later, NGO can prove that the donation boxes open after 8th Nov and there were old notes which were deposited in the bank.
Q – What is advisable regarding taking donations between 8th Nov to 30th Dec..?
A – As a genuine NGO, one should not accept any donation in CASH during this period. If you received donation in new notes, kindly take the proof of the donors and keep the bank deposit slips.
Earlier, Trust and NGOs were already under the radar of the Government before demonetization, now we can predict that more strict control coming in near future.
Let us discuss today about dos and don’ts by NGOs in a Question Answer Round.
Q – Can old notes be deposited in NGOs Bank Account and what is the time limit?
A – Yes, old notes can be deposited in NGOs Bank Account till December 30.
Q – How much cash can be deposited?
A – As such no limits, but not more than the CASH ON HAND AS ON 8th NOV.
Q – Can we take cash donation in Old notes now?
A – No. After 8th Nov, old Rs. 500 and Rs. 1000 notes are not valid tender.
Q – Can we take donation in cash in back dated and thus create more cash balance as on 8th Nov?
A – I suggest NO. Just two days back, not confirmed but, IT (Exemption) of Mangalore has issued notices to NGOs to submit authorized copy of cash books as on 8th Nov with denomination.
Q – Can we deposit cash in FC in old notes?
A – Yes you can deposit old notes in FC account but not more than cash balance of FC books as on 8th Nov. I suggest if the cash balance is not much amount get it exchanges with new notes.
Q – What about staffs advance already given before 8th Nov in old notes?
A – Do not take bake the advance and deposit in the Bank. It is advisable to ask staff members to exchange it.
Q – What about Donation boxes lying outside the offices like at airports, malls etc..?
A – Immediately get all the donation boxes back and record its cash on books as donation and keep photographs before and after opening of boxes or record a video at the time of opening of boxes with the current date newspaper. So that later, NGO can prove that the donation boxes open after 8th Nov and there were old notes which were deposited in the bank.
Q – What is advisable regarding taking donations between 8th Nov to 30th Dec..?
A – As a genuine NGO, one should not accept any donation in CASH during this period. If you received donation in new notes, kindly take the proof of the donors and keep the bank deposit slips.
Saturday, November 19, 2016
Tax Notice to Trusts & NGOs on OHD
On 8th November, the Government recalled 500 and 1000 rupee notes (OHD). Some persons have apparently started using tax exempt trusts to launder their OHD. Or so it would seem.
To prevent this, Income Tax Department is sending notices to all tax exempt trusts. The notices are being issued under sec. 133(6). The Trusts are being asked to submit information on cash balance in hand as on 31-Mar-16 and 8-Nov-16. This will help the Department put a cap on the amount of OHD these trusts can deposit in their bank.
If you don't respond to the notice in time, and yet deposit a lot of OHD in bank, you may face:
1. penalty of Rs. 100 per day under sec. 272A, or
2. Scrutiny of your accounts during assessment.
If you’ve not received the notice yet, don't worry. You soon will!
And even if you don't, stay safe and don't yield to temptation. Any attempt to launder large amounts for others will be easily detected. And you may face scrutiny for earlier years as well.
To prevent this, Income Tax Department is sending notices to all tax exempt trusts. The notices are being issued under sec. 133(6). The Trusts are being asked to submit information on cash balance in hand as on 31-Mar-16 and 8-Nov-16. This will help the Department put a cap on the amount of OHD these trusts can deposit in their bank.
If you don't respond to the notice in time, and yet deposit a lot of OHD in bank, you may face:
1. penalty of Rs. 100 per day under sec. 272A, or
2. Scrutiny of your accounts during assessment.
If you’ve not received the notice yet, don't worry. You soon will!
And even if you don't, stay safe and don't yield to temptation. Any attempt to launder large amounts for others will be easily detected. And you may face scrutiny for earlier years as well.
HC refuses to defreeze NGO's a/c to use foreign funds
New Delhi, Nov 18 (PTI) The Delhi High Court today refused to defreeze an NGO's account enabling it to use its foreign funds as the Centre claimed the decision not to renew the foreign funding registration under FCRA was taken in "public interest".
"I am not inclined to give any interim relief with regard to defreezing of the petitioner account. I will have to hear it and than decide the issue," Justice Sanjeev Sachdeva said.
It further observed that Ministry of Home Affairs (MHA) in their sealed cover report, which was perused by it, has stated that they have inputs of the intelligence agencies in relation to the renewal of licence and the foreign funding.
The court, however, asked the MHA to file its counter affidavit within three weeks asking it to give reasons for refusing to renew registration of the NGO, Centre for Promotion of Social Concerns (CPSC), under the Foreign Contribution Regulation Act (FCRA).
The court has fixed the matter for further hearing on January 17.
Central government standing counsel Anil Soni, appearing for the MHA, defended the decision saying it was done in the "public interest".
"We have right to prohibit foreign contribution which are likely to affect prejudicially the public interest and also the friendly relation with any foreign state," the MHAs' counsel said.
He also said that the government was exempted from giving reasons for refusing to renew the FCRA registrations.
Soni also told the court that the National Human Rights Commission (NHRC) had issued notice to the Home Secretary after taking suo-motu cognisance of the issue, and has sought a report within six weeks.
The MHA has been asked by NHRC to provide details of the number of NGOs of Human Rights defenders that have not been allowed renewal of licence and the foreign funds received by them over the past three years, as well as the reason for non-renewal, he said.
The lawyer also said how the matter could be taken up by the commission when the high court was dealing with it.
Source: http://www.ptinews.com/news/8093085_HC-refuses-to-defreeze-NGO-s-a-c-to-use-foreign-funds-.html
"I am not inclined to give any interim relief with regard to defreezing of the petitioner account. I will have to hear it and than decide the issue," Justice Sanjeev Sachdeva said.
It further observed that Ministry of Home Affairs (MHA) in their sealed cover report, which was perused by it, has stated that they have inputs of the intelligence agencies in relation to the renewal of licence and the foreign funding.
The court, however, asked the MHA to file its counter affidavit within three weeks asking it to give reasons for refusing to renew registration of the NGO, Centre for Promotion of Social Concerns (CPSC), under the Foreign Contribution Regulation Act (FCRA).
The court has fixed the matter for further hearing on January 17.
Central government standing counsel Anil Soni, appearing for the MHA, defended the decision saying it was done in the "public interest".
"We have right to prohibit foreign contribution which are likely to affect prejudicially the public interest and also the friendly relation with any foreign state," the MHAs' counsel said.
He also said that the government was exempted from giving reasons for refusing to renew the FCRA registrations.
Soni also told the court that the National Human Rights Commission (NHRC) had issued notice to the Home Secretary after taking suo-motu cognisance of the issue, and has sought a report within six weeks.
The MHA has been asked by NHRC to provide details of the number of NGOs of Human Rights defenders that have not been allowed renewal of licence and the foreign funds received by them over the past three years, as well as the reason for non-renewal, he said.
The lawyer also said how the matter could be taken up by the commission when the high court was dealing with it.
Source: http://www.ptinews.com/news/8093085_HC-refuses-to-defreeze-NGO-s-a-c-to-use-foreign-funds-.html
Delhi HC refuses to defreeze NGO's account to use foreign funds
Delhi HC refused to defreeze an NGO's account enabling it to use its foreign funds as the Centre claimed the decision not to renew the foreign funding registration under FCRA was taken in "public interest". It has asked MHA to file counter affidavit in three weeks.
The Delhi High Court on Friday refused to defreeze an NGO's account enabling it to use its foreign funds as the Centre claimed the decision not to renew the foreign funding registration under FCRA was taken in "public interest".
"I am not inclined to give any interim relief with regard to defreezing of the petitioner account. I will have to hear it and than decide the issue," Justice Sanjeev Sachdeva said. It further observed that Ministry of Home Affairs (MHA) in their sealed cover report, which was perused by it, has stated that they have inputs of the intelligence agencies in relation to the renewal of licence and the foreign funding. The court, however, asked the MHA to file its counter affidavit within three weeks asking it to give reasons for refusing to renew registration of the NGO, Centre for Promotion of Social Concerns (CPSC), under the Foreign Contribution Regulation Act (FCRA)
The court has fixed the matter for further hearing on January 17. Central government standing counsel Anil Soni, appearing for the MHA, defended the decision saying it was done in the "public interest". "We have right to prohibit foreign contribution which are likely to affect prejudicially the public interest and also the friendly relation with any foreign state," the MHAs' counsel said. He also said that the government was exempted from giving reasons for refusing to renew the FCRA registrations.
Soni also told the court that the National Human Rights Commission (NHRC) had issued notice to the Home Secretary after taking suo-motu cognisance of the issue, and has sought a report within six weeks. The MHA has been asked by NHRC to provide details of the number of NGOs of Human Rights defenders that have not been allowed renewal of licence and the foreign funds received by them over the past three years, as well as the reason for non-renewal, he said. The lawyer also said how the matter could be taken up by the commission when the high court was dealing with it.
The court was hearing the plea of CPSC, better known by its programme unit People's Watch, which sought setting aside of the government's October 29 decision refusing to renew its registration. The NGO said restriction of its funds "has caused a great amount of harm and it will result in a complete halt of its charitable activities which will affect a vast number of people".
The central government counsel countered saying the NGO continues to operate and only the foreign contribution has been restricted. The MHA had recently denied FCRA registration to 25 NGOs for being allegedly involved in anti-national activities and derecognised over 11,000 such organisations for failing to apply for renewal. CPSC has contended that the only reason it was given for non-renewal of its registration was -- "On the basis of a field agency report, the competent authority has decided to refuse your application for renewal".
It has said in its plea that under the FCRA Rules, its application for renewal was to be decided in 90 days and in case of delay, reasons had to be communicated to it. The NGO has contended that since the prescribed procedures were not followed, its registration would be deemed to have been renewed after expiry of 90 days from March 14, when it had applied for renewal. To this the counsel for the MHA submitted that they are not obliged to inform the NGO about such decision.
Source: http://www.dnaindia.com/india/report-delhi-hc-refuses-to-defreeze-ngo-s-account-to-use-foreign-funds-2274711
The Delhi High Court on Friday refused to defreeze an NGO's account enabling it to use its foreign funds as the Centre claimed the decision not to renew the foreign funding registration under FCRA was taken in "public interest".
"I am not inclined to give any interim relief with regard to defreezing of the petitioner account. I will have to hear it and than decide the issue," Justice Sanjeev Sachdeva said. It further observed that Ministry of Home Affairs (MHA) in their sealed cover report, which was perused by it, has stated that they have inputs of the intelligence agencies in relation to the renewal of licence and the foreign funding. The court, however, asked the MHA to file its counter affidavit within three weeks asking it to give reasons for refusing to renew registration of the NGO, Centre for Promotion of Social Concerns (CPSC), under the Foreign Contribution Regulation Act (FCRA)
The court has fixed the matter for further hearing on January 17. Central government standing counsel Anil Soni, appearing for the MHA, defended the decision saying it was done in the "public interest". "We have right to prohibit foreign contribution which are likely to affect prejudicially the public interest and also the friendly relation with any foreign state," the MHAs' counsel said. He also said that the government was exempted from giving reasons for refusing to renew the FCRA registrations.
Soni also told the court that the National Human Rights Commission (NHRC) had issued notice to the Home Secretary after taking suo-motu cognisance of the issue, and has sought a report within six weeks. The MHA has been asked by NHRC to provide details of the number of NGOs of Human Rights defenders that have not been allowed renewal of licence and the foreign funds received by them over the past three years, as well as the reason for non-renewal, he said. The lawyer also said how the matter could be taken up by the commission when the high court was dealing with it.
The court was hearing the plea of CPSC, better known by its programme unit People's Watch, which sought setting aside of the government's October 29 decision refusing to renew its registration. The NGO said restriction of its funds "has caused a great amount of harm and it will result in a complete halt of its charitable activities which will affect a vast number of people".
The central government counsel countered saying the NGO continues to operate and only the foreign contribution has been restricted. The MHA had recently denied FCRA registration to 25 NGOs for being allegedly involved in anti-national activities and derecognised over 11,000 such organisations for failing to apply for renewal. CPSC has contended that the only reason it was given for non-renewal of its registration was -- "On the basis of a field agency report, the competent authority has decided to refuse your application for renewal".
It has said in its plea that under the FCRA Rules, its application for renewal was to be decided in 90 days and in case of delay, reasons had to be communicated to it. The NGO has contended that since the prescribed procedures were not followed, its registration would be deemed to have been renewed after expiry of 90 days from March 14, when it had applied for renewal. To this the counsel for the MHA submitted that they are not obliged to inform the NGO about such decision.
Source: http://www.dnaindia.com/india/report-delhi-hc-refuses-to-defreeze-ngo-s-account-to-use-foreign-funds-2274711
Delhi HC refused to pass interim order on renewal of NGO licence under FCRA
The centre submitted in a sealed cover its reasons for not renewing the licence of Centre for Promotion of Social Concerns under the Foreign Contribution Regulation Act
New Delhi: The Centre on Friday submitted in a sealed cover its reasons for not renewing the licence of Centre for Promotion of Social Concerns (CPSC), a charitable trust, under the Foreign Contribution Regulation Act (FCRA), 2010.
Delhi high court justice Sanjeev Sachdeva, who was hearing the matter, perused the document and held that he would not pass any interim order.
Sanjay Parikh, counsel for CPSC, told the court that the matter was also being heard by the National Human Rights Commission (NHRC), due to which the high court should not hear it.
This contention was rejected and it was held that an alternative remedy of approaching the NHRC would not preclude the high court from hearing the matter.
During the hearing, Anil Soni, on behalf of the Centre, told the court that it was not obligated to provide reasons for decisions and the renewal was denied based on inputs from intelligence agencies.
CPSC has sought quashing of the impugned order of 29 October, by which the application for renewal of registration under FCRA was rejected by the Centre. Its FCRA registration was set to expire on 31 October.
The case will be heard next on 10 January.
Source: http://www.livemint.com/Politics/lP7e8X0zWPORSzkcffHxBO/Delhi-HC-refused-to-pass-interim-order-on-renewal-of-NGO-lic.html
New Delhi: The Centre on Friday submitted in a sealed cover its reasons for not renewing the licence of Centre for Promotion of Social Concerns (CPSC), a charitable trust, under the Foreign Contribution Regulation Act (FCRA), 2010.
Delhi high court justice Sanjeev Sachdeva, who was hearing the matter, perused the document and held that he would not pass any interim order.
Sanjay Parikh, counsel for CPSC, told the court that the matter was also being heard by the National Human Rights Commission (NHRC), due to which the high court should not hear it.
This contention was rejected and it was held that an alternative remedy of approaching the NHRC would not preclude the high court from hearing the matter.
During the hearing, Anil Soni, on behalf of the Centre, told the court that it was not obligated to provide reasons for decisions and the renewal was denied based on inputs from intelligence agencies.
CPSC has sought quashing of the impugned order of 29 October, by which the application for renewal of registration under FCRA was rejected by the Centre. Its FCRA registration was set to expire on 31 October.
The case will be heard next on 10 January.
Source: http://www.livemint.com/Politics/lP7e8X0zWPORSzkcffHxBO/Delhi-HC-refused-to-pass-interim-order-on-renewal-of-NGO-lic.html
Monday, November 14, 2016
Currency Recall - Risk for NGOs
On 8th November, the Government recalled all currency notes of Rs. 500 and Rs. 1,000 (OHD). These can be accepted at some merchants (Govt. Hospitals, petrol pumps, etc.) till 14-Nov. Limited amounts (Rs. 4,000) can be exchanged by individuals across bank counters on producing ID proof (Aadhar card). Larger amounts should be deposited back into your bank account.
This move has also started a panic among people hoarding OHD. Reportedly, they are offering large sums (in 500, 1000 rupee OHD notes) to charitable and religious organisations as donations. The thinking is that the currency can be deposited in NGO bank account, and then withdrawn later.
What to do if you receive such an offer? Deposits of OHD into NGO accounts must be backed by genuine book entries and donor details. Tax officers will also correlate this with deposit pattern in the past. If these do not match, they may levy high penalties of 200%+ for laundering of OHD.
You should therefore say NO to any such offers.
This move has also started a panic among people hoarding OHD. Reportedly, they are offering large sums (in 500, 1000 rupee OHD notes) to charitable and religious organisations as donations. The thinking is that the currency can be deposited in NGO bank account, and then withdrawn later.
What to do if you receive such an offer? Deposits of OHD into NGO accounts must be backed by genuine book entries and donor details. Tax officers will also correlate this with deposit pattern in the past. If these do not match, they may levy high penalties of 200%+ for laundering of OHD.
You should therefore say NO to any such offers.
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