B K Panchal (ACCOUNTS OFFICER) (42 Points)
12 December 2014An Indian NGO having FCRA registration has entered into a research project contract with a foreign organization.
This NGO now wants to assign a major portion of this contract to another Indian NGO not having FCRA regn by a rupee contract.
The former NGO will pay in rupee to later NGO. Is this possible or the receiving NGO must have FCRA registration?
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(5225 Points)
Replied 20 December 2014
Section 2(1)(a) of FCRA defines the term association as : “ association” means an association of individuals, whether incorporated or not, having on office in India and includes a society, whether registered under the Societies Registration Act, 1860 (21 of 1860), or not, and any other organisation, by whatever name called ; The Act does not specify registration as a condition precedent to for the purposes of this act. It is not necessary for an association to be a registered one but there must be some documentary evidence to establish the existence and activities of the association. But for all practical purposes registration is a defector necessity.
CAclubindia
