Contracts

In: Business and Management

Submitted By atiqul92
Words 4598
Pages 19
From the perspective of NGOs:
The Basic Documentation required for NGOs to comply with the letter and spirit of law-
1. First get a PAN. After registration of NGO with State Charity Commissioner or Collector or Society Registrar, first thing is to apply for PAN of NGO. Yes, it is mandatory.
2. Registration under section 12A of the Income Tax Act Commonly known as 12A certificate, this registration is NOT mandatory. Purpose of getting this registration u/s. 12A is to get exemption from Income Tax on the Income of the trust, if all the conditions laid down in this section are fulfilled.
3. Registration under section 80G of the Income Tax Act Again, this is NOT a mandatory one. However to give benefit of 50% or 100% exemption on donation to our donors, it is per-requisition to get the registration u/s. 80G of Income Tax Act. It is indirectly benefited to NGOs to raise funds.
4. Registration under FCRA Act (Foreign Contribution Registration Act) If there are possibilities to receive Foreign Funds for projects of NGO, a registration with FCRA department, Ministry of Home Affairs is compulsory. Without FCRA registration, NGO cannot receive any foreign donation or grants.
5. Getting a TAN during the working of NGO at any point of time, if NGO become liable to deduct tax from source, it has to first apply for TAN. Like PAN, TAN application can be made online thought
6. Getting a Service Tax Registration Only when NGO is providing services like consultancy work or research activity etc. and if gross revenue from such activity cross the basic exemption limit of service tax, then NGO has to first apply for Service Tax Registration number. You can apply for it online.
7. Yes, a Professional Tax Number is required Professional Tax is a liability of NGO to deduct from the salary of employee and deposited to Government. Professional Tax is State Government look out…...

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