control over political parties
This query is : Resolved
18 September 2007
I want to know that is there any control over political parties for their funds and the utilisation. Is Election Commission of India maintain such type of control. Is the control ( if any ) is also applicable on listed but not recognised political parties.
18 September 2007
Yes it is there.
Any donation for more than 5000, names should be mentioned that who has given it and other details. Not by Election commision but by IT Act. I am not sure if any guideline is there for expense.
Also, Companies are not allowed to pay more than certain % of their profit to political outfits(check with Companies Act).
Election Commission has guidelines regarding expense to be incurred on Election campaign. Its another thing that no one follows it.
Any donation for more than 5000, names should be mentioned that who has given it and other details. Not by Election commision but by IT Act. I am not sure if any guideline is there for expense.
Also, Companies are not allowed to pay more than certain % of their profit to political outfits(check with Companies Act).
Election Commission has guidelines regarding expense to be incurred on Election campaign. Its another thing that no one follows it.
18 September 2007
Hi Manish,
Donations are disallowed from the expenses in P/L Account.
And Mr Shashwat is correct for the % and the limit for donations to the political parties
Donations are disallowed from the expenses in P/L Account.
And Mr Shashwat is correct for the % and the limit for donations to the political parties
18 September 2007
The answer given by u is not related to my query. I know the controls of Income tax dept, but I want to know about the controls of Other depts like Election commission of India.
19 September 2007
Yes Mr Manish,
There is code of conduct for the parties and they has to maintain proper record of all expenses incurred. Here is one of the law: 9. COMPULSORY MAINTENANCE OF ACCOUNTS BY POLITICAL PARTIES AND AUDIT THEREOF
BY AGENCIES SPECIFIED BY THE ELECTION COMMISSION
The Commission considers that the political parties have a responsibility to maintain proper
accounts of their income and expenditure and get them audited by agencies specified by the
Commission annually. While making this proposal in 1998, the Commission had mentioned that
there was strong need for transparency in the matter of collection of funds by the political parties
and also about the manner in which those funds are expended by them. Although in an
amendment made last year, vide the Election and Other Related Laws (Amendment) Act, 2003,
a provision has been made regarding preparation of a report of contributions received by political
parties in excess of Rs.20,000/-, this is not sufficient for ensuring transparency and accountability
in the financial management of political parties. Therefore, the political parties must be
required to publish their accounts (at least abridged version) annually for information
and scrutiny of the general public and all concerned, for which purpose the maintenance
of such accounts and their auditing to ensure their accuracy is a pre-requisite. The
Commission reiterates these proposals with the modification that the auditing may be
done by any firm of auditors approved by the Comptroller and Auditor General.
The audited accounts should be available for information of the public.
There is code of conduct for the parties and they has to maintain proper record of all expenses incurred. Here is one of the law: 9. COMPULSORY MAINTENANCE OF ACCOUNTS BY POLITICAL PARTIES AND AUDIT THEREOF
BY AGENCIES SPECIFIED BY THE ELECTION COMMISSION
The Commission considers that the political parties have a responsibility to maintain proper
accounts of their income and expenditure and get them audited by agencies specified by the
Commission annually. While making this proposal in 1998, the Commission had mentioned that
there was strong need for transparency in the matter of collection of funds by the political parties
and also about the manner in which those funds are expended by them. Although in an
amendment made last year, vide the Election and Other Related Laws (Amendment) Act, 2003,
a provision has been made regarding preparation of a report of contributions received by political
parties in excess of Rs.20,000/-, this is not sufficient for ensuring transparency and accountability
in the financial management of political parties. Therefore, the political parties must be
required to publish their accounts (at least abridged version) annually for information
and scrutiny of the general public and all concerned, for which purpose the maintenance
of such accounts and their auditing to ensure their accuracy is a pre-requisite. The
Commission reiterates these proposals with the modification that the auditing may be
done by any firm of auditors approved by the Comptroller and Auditor General.
The audited accounts should be available for information of the public.
20 September 2007
Thanks for the reply,
can u plz let me knwo that this law applies to all political parties whether they are recognised at national level, state level or even they are registered but un recognised.
can u plz let me knwo that this law applies to all political parties whether they are recognised at national level, state level or even they are registered but un recognised.
27 September 2007
some of the laws are saperate for different level of parties
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Disallowance of Section 43B(h) to sez units
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
Trending Online Classes
CAclubindia
