Corporate Lawyers in Delhi-NCR

35AC Registration - A fundraising tool for NGOs

Section 35 AC of the Income Tax Act, 1961, is one of the key provision which is relevant for raising funds and resources for NGO’s if understood and used effectively.

The objective of Section 35 AC is to encourage business organizations to contribute more in social and economic welfare and upliftment of general public. With the increased emphasis on the corporate social responsibility in the corporate sector and ostentatious display of charity by people like Bill Gates and Warren Buffet, the contribution in the monetary term by the corporate sector in India towards socially relevant project cannot be undermined.

NGO’s involved in eligible projects notified by the Central Government for promoting the social and economic welfare can raise resources for eligible project from corporate sector and fulfil their objective of development.

Corporates simultaneously can fulfil their corporate social responsibility aspect of the business by contributing towards the eligible projects and gain by availing deduction under Section 35 AC. Thus Section 35 AC can be used as an effective tool of fund raising by the NGO’s. It can also lead to a mutually beneficial relationship between NGOs and the Corporate Sector.

SECTION 35AC

Section 35 AC provides that where a person or company incurs any expenditure by way of payments of any sum to :

Ø  A public sector company or;

Ø  A local authority or;

Ø  To an association or institution approved by the National Committee

For carrying out any eligible project or scheme for promoting the social and economic welfare of the public as the Central Government may specify, then the amount so paid shall be allowed as deduction from the business income of the assessee/contributor of such amount. In view of NGO’s, the approved association or institution by National Committee can raise funds for their approved from the eligible persons and donors can avail the benefits of tax deductions

Eligible persons to make contributions

Persons eligible to make contributions include:

Ø  An individual;

Ø  A Hindu Undivided Family;

Ø  A Company;

Ø  A Firm;

Ø  An Association of persons or Body of Individuals, whether incorporated or not;

Ø  A Local authority;

Ø  Every artificial juridical person not falling within any of the preceding sub-clauses.

The Section 35AC of the Income Tax Act, 1961 allows deduction from the income of the assessee on payments made to eligible organizations and the donors will get this benefit. To avail deduction under Section 35AC, all assessee other than companies should make payment to outside agencies only, whereas companies have the option of either making payment to outside agencies or they can incur expenditure themselves.

Procedure for making an application for approval of a project or scheme by the National Committee:

In case an applicant wishes to include a project or scheme for promoting the social and economic welfare of public or uplift of the public as ‘Eligible Project or Scheme’, then an application has to be made to National Committee which should contain the following particulars and be accompanied with relevant documents:

Ø  Title of project or scheme, date of commencement, duration and likely date of completion;

Ø  Estimated cost of project or scheme duly supported by a copy of the resolution of the Managing Committee of the applicant;

Ø  Classes of persons who are likely to be benefited from the project or scheme;

Ø  Affirmation that no benefit from the project or scheme, other than remuneration or honorarium for whole time or part-time work done or for reimbursement of actual expenses related to the project will accrue to the persons managing the affairs of the association or institution

The eligible projects includes:

1. Family Welfare and immunization 
2. Tree plantation 
3. Social Forestry 
4. Development of Irrigation Resources 
5. Rural Sanitation - Construction of low cost latrines 
6. Medical camps in rural areas 
7. Rural Health Programs 
8. Land development and recovering of waste land with special concern on ecological improvement 
9. Soil and water conservation including harvesting of run off water 
10. Non formal education and literacy, especially for children and women 
11. Rural and non farm activities. 
12. Creation of employment opportunities for urban and rural population living below the poverty line. 
13. Supportive services for women to engage in productive work (Children care of working women) 
14. Leprosy eradication 
15. Promotion of sports 
16. Construction of dwelling units for the economically weaker sections 
17. Construction of school building for children belonging to the economically weaker sections of the society 
18. Establishment and running of non-conventional and renewable sources of energy systems 
    Any other program for uplift of the rural poor or the urban slum dwellers.

Documents requisite:

1. Bye Laws of NGO
2. Copy of Registration Certificate;
3. Copy of resolution with date & seal of the NGO, passed by the Board to undertake the work under S.35 AC of the IT Act;
4. A brief note on Proposed Project;
5. Brief note on past activities & credentials of Management with details of experience in activities similar to the object of proposed project;
6. Information regarding  availability of land/infrastructure to execute the project /land documents to be enclosed;
7. Expenditure incurred as on date on the proposed project;
8. Blue prints along with professional cost estimates in support of construction activities;
9. Income criteria for selection of beneficiaries/services to poor/weaker section of the society;
10. Information regarding recognition of school/training etc. from the concerned education/technical board;
11. Details of similar activities undertaken by NGO & the accomplishments/achievements etc.;
12. Annual Reports & Audited Balance Sheets for last 3 financial years;
13. Activity Reports of last 3 years;
14. Approval under Section 12 A & 80G of IT Act;
15. Approval under FCRA, if any

For any 35AC registration, please contact at admin@equicorplegal.com /+91 9958709189

Collective investment Schemes

 The approval or Collective investment Schemes in Asian nation involves varied registrations and approvals that embody such a lot of paper work that take an excessive amount of time and dear as per services and time. the entire method has been done from
Ministry of knowledge & Broadcasting (“MIB”) or
Telecom administrative unit of Asian nation (“TRAI”) or
Wireless designing & Coordination Authority (“WPC”)  (Wing of the Ministry of Communication and data Technology), in line with the case because it is critical for Collective investment Schemes .
“Service of any description that is formed obtainable for users sort of a transmission or reception of signals, writing documents, adding pictures and sounds or intelligence of any nature, by victimisation mediums like, wire, radio, visual or the other electronic suggests that, however it doesn\'t embody broadcasting services.”
Collective investment Schemes
Hence ‘broadcasting’ is excluded from  the govt of Asian nation licensed the TRAI to give notice the broadcasting services. This notification had been given to TRAI,  the authority to control broadcasting and cable services in Asian nation. The licence needed for broadcasting  is given by Wireless designing & Coordination Authority (“WPC”) .

Registration of TV Channel

The approval or Registration of TV Channel in India involves various registrations and approvals which include so many paper work which take too much time and costly as per services and time. The whole process has been done from

Ministry of Information & Broadcasting (“MIB”) or

Telecom Regulatory Authority of India (“TRAI”) or

Wireless Planning & Coordination Authority (“WPC”)  (Wing of the Ministry of Communication and Information Technology), according to the case as it is necessary for Registration of TV Channel .

“Service of any description which is made available for users like a transmission or reception of signals, writing documents, adding images and sounds or intelligence of any nature, by using mediums like, wire, radio, visual or any other electronic means, but it does not include broadcasting services.”

Hence ‘broadcasting’ is excluded from this definition, as per MIB’s directive dated January 09, 2004; the government of India authorized the TRAI to notify the broadcasting services. This notification had been given to TRAI,  the authority to regulate broadcasting and cable services in India. The licence required for broadcasting  is given by Wireless Planning & Coordination Authority (“WPC”) .

Registration of Micro Finance Institutions/NBFC

Registration of Micro Finance Institutions/NBFC
The website is giving brief knowledge of transaction procedure related to the establishment of any new Micro Finace Institutions ("MFI") as per the laws strength in India. It helps to do practice for new comer lower/financier. It is noted here that the activities described in this section is covers under various relevant legislation, regulations and rules, of India. It helps to obtain the legal entity for approval/registration itself with various statutory authorities as required under different legislation.

Incorporate Private Limited Company in India
Status of Different Micro-finance models in India
Priority sector lending in Urban Cooperative Banks-RBI guidelines
How To Comply NBFC, FCRA Regulation Acts
The Indian micro finance sector is the highest growth gainer in India over last decade. A micro finance institution should have permission to lend through registration, each formation requirements & privileges. Micro Finace Institutions in India is a registered company under the GOVT of India.

Domestic Enquiries & Employment Law

The very basis of any well organized establishment is discipline and the management must take prudent measures in upholding this. Disciplining a workman is one of the key methods of curtailing disputes amongst them and achieving maximum productivity.
 However, the power to supervise this discipline should not be used as tool to arbitrarily dismiss or punish a workman, which would be indeed be very unfair to them. Every establishment is expected to maintain Model Standing orders or Standard Standing Orders which lay down the bye laws of the industry including those dealing with misconduct and discipline.
With the growing importance of human rights, its enforcement and the notions of equality and fairness for all, law has made it necessary for an employer to work in a just and fair manner towards its workers knowing that it is the weaker party in industrial relations. It is for this purposes its mandatory for employers to hold domestic enquiries.
It has been held by Hon’ble Supreme Court of India in Hombe Gowda Educational Trust v. State of Karnataka, stated that giving managers the power to punish a workmanaccording to law, even if the punishment may result in some hardship is important. But, one needs to bear in mind that conducting disciplinary proceedings against a workman is most controversial and often lead to long drawn-out cases. Hence, the management of any industrial establishment must cautiously approach such proceedings and strictly follow the procedure laid down by judicial precedents.

Registration TV Channel

Registration TV Channel in India involves various registrations and approvals which includes, the approval/register itself with Ministry of Information & Broadcasting (“MIB”) and/or Telecom Regulatory Authority of India (“TRAI”) and/or (Wireless Planning & Coordination Authority) Wing of the Ministry of Communication and Information Technology (“WPC”) as the case may be.

Though the Indian Telegraph Act, 1885 (“Telegraph Act”) does not explicitly define ‘telecommunications service’ and ‘broadcasting service’, the TRAI Act, 1997, defines communication service in Section 2(1)(k) as:

“Service of any description (including electronic mail, voice mail, data services, audio-text services, video-text services, radio paging, and cellular mobile telephones services) which is made available to users by means of a transmission or reception of signals, writing, images, and sounds or intelligence of any nature, by wire, radio, visual or any other electronic means but shall not include broadcasting services.”

[Provided that the Central Government may notify other service to be telecommunication service including broadcastingservices.]

Although, ‘broadcasting’ is expressly excluded from this definition, as per MIB’s directive dated January 09, 2004, the government was authorised to notify broadcasting services to be a telecommunication service. This notification gave TRAI the authority to regulate broadcasting and cable services in India. The licence required for broadcasting (the Wireless Operating Licence) is given by WPC.

In general, to offer most kinds of broadcasting services, a broadcasting company must obtain two types of licences:

(i)         A Grant of Permission (“GOPA”) to offer broadcast services which is issued MIB; and

(ii)        A wireless operating licence from the WPC under the Wireless Telegraphy Act.

For a broadcaster to offer its programmes to the end consumers requires uplinking (i.e., sending signal from ground station to satellite) and downlinking (i.e.. transmitting signal from satellite to receiving station on the ground to be relayed to customer). MIB has a separate set of guidelines in respect to uplinking and downlinking which has been discussed below. The application process has three distinct phases which are for:- (i) approval to uplink TV channel; (ii) approval for setting-up Teleport for uplink or endorsement by third party Teleport for uplink; and (iii) approval for downlink of TV channel.