Tag Archive for: Quick Registration

Statutory Compliance for NGO after its registration

Statutory compliance for ngo in india

We have already discussed in this post about how to form NGO. After forming NGO in India, there are statutory compliance for NGO, which requires utmost care. Let us discuss all in detail, one by one.

PAN

After registration of NGO with State Charity Commissioner or Collector or Society Registrar, first thing is to apply for PAN of NGO. It is compulsory to apply for PAN after registration of NGO. You can apply PAN online through this website.

Registration u/s. 12A of 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. You can check detail procedure here how to apply for 12A certificate.

Registration u/s. 80G of 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. Go through this post for detail procedure to get 80G Certificate.

FCRA Registration

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. Check more FAQs on FCRA here.

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 this website.

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. Again it is an online procedure and you can apply for registration here.

Professional Tax

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 and thus different states of India having different rules for Professional Tax.

Retirement Benefit

Retirement benefits like Provident Fund, Gratuity, ESIC etc.. is applicable to NGO when it grow up and having employees more than prescribed limit in this acts.

Summary

Depending upon the work and size of NGO, you can either apply for all the above statutory compliance immediately after registration of NGO or you can apply as and when requirement arises.

/8 Comments/by
, ,

NGO Regulatory Authority in india

In India, Non Government Organization or Non Profit Organization can be registered under any legal entity. Mainly following entities are prevails in India –

  • Proprietary Concern
  • Partnership Firm
  • HUF
  • Company
  • Association of Persons, which includes – Trust, Society, Union, Institute etc…

NGO Regulatory Authority in India

For NGO or NPO, mainly three separate entity status possible, either registered as company, trust or society. These three have their own benefit and disadvantages. Different legal status regulated by different legal acts and laws in India. Lets look at the various NGO regulatory authority in India :

 Legal Status Act Aply Remarks
Company NGO can be registered as company under Section 8 of The Companies Act, 2013 Earlier it was Section 25 of The Companies Act, 1956
Trust NGO can be registered as trust under Indian Trust Act, 1882 However, every state has its own Trust Act. Like in Maharshtra and Gujarat, The Bombay Public Trust Act, 1950
Society NGO can be registered as Society under The Societies Registration  Act, 1860 However, every state has its own Act. Like in Gujarat, The Gujarat Co-operative Societies Act, 1962

Summary

Once NGO is registered under any of the above statute, there are number of other registration has to be taken depending on the need and requirements, e.g Sec 12A exemption, 80G certificate, FCRA registration, 35AC exemption registration and so forth.

Hope this will help you in your NGO, if you have any question, you can ask here or chat with us. Also your comments are welcome on the above subjects.

/0 Comments/by