AccountAid Capsules 2007 (227...)

A Mumbai-based software company, Antra Web Technologies Pvt. Ltd. is offering some useful add-on modules for Tally 9. These modules can be purchased separately and installed on your computer. This will allow you to increase the features of your Tally accounting software:

1. Voucher-Type Level Security: Restrict user to creation/alteration of a specific voucher type

2. Report Generator for Tally: Construct your own reports using data from Tally without programming knowledge.

3. Audit Trail: Entire trail of a voucher starting from when it was created, by whom and on what date.

For pricing and other details you will need to get in touch with the company:

202, Mahavir Industrial Estate,

Nr. Paper Box Factory, Opp. Nelco,

Off. Mahakali Caves Road,

Andheri (East), Mumbai - 400 093

Tel :- 26875114, 26874491/2 . Fax :- 26874493

sales@antraweb.com

[References:

http://www.antraweb.com/

Please note that AccountAid has not evaluated this product or the company. This capsule is meant for general information only. –Ed.]

260: Divine Partners

(11-Oct-07)

Over the last three years, Sh. KV. Ramani, a software engineer from Chennai made about Rs.200 crores from the booming share market in India. He attributed this success to the blessings of Sai Baba of Shirdi. He has now given Rs.68 crores to the Sai Baba Mandir Trust, Shirdi for construction of a rest house for the devotees. According to him, this is Sai Baba’s share of the profits which he made from the market!

This is not an isolated instance. In many regions, Hindu business persons formally put down their isht-dev as a partner in the partnership deed. His / her share is also specified and regularly paid out in the form of contributions to charity. This arrangement is also recgonised by income tax authorities.

[References:

Sai Baba of Shirdi (1838-1918) is different from Sathya Sai Baba (b. 1926) of Puttaparthy. - Ed.

isht-dev: Patron God, a particular whose favours are sought by the devotee.

‘Aay 200 crore, baba ko 68 crore’, Rajasthan Patrika, p.1, 4-Oct-07]

259: Vodafone India Foundation

(9-Oct-07)

Recently, Vodafone took over Hutch in India. And the Hutch mascot decided that change was good.

There is now news of more change – Vodafone is setting up its 24^th foundation, to be called Vodafone India Foundation. And the mother, Vodafone Group Foundation, based in UK, has committed $10 million to the new baby. That’s about 39 crore Rupees.

Vodofone’s Chief Executive, Sh. Arun Sarin, will also be the Chairperson of this foundation. The Foundation plans to support local and international NGO on projects related to education and skill-building.

[References:

http://www.vodafonefoundation.org/5.0.html(news/item11.xml)]

258: Get rid of mutual funds?

(8-Oct-07)

If you are holding any FCRA investments in mutual funds, should you then get rid of them?

Not straight away. The statement on the FCRA web-site is a general information statement, of unclear origin. It is not a signed order issued by the Government. It also does not offer any reference to the section or rule in FCRA 1976, which supports this interpretation.

Secondly, it is difficult to categorize all mutual funds as speculative investments. Growth-based mutual funds are subject to market-risks, because these invest in equity shares. Others, such as debt-funds invest in corporate bonds etc. Debt-funds (such as gilt or liquid funds) which invest in government securities and money markets can not really be called speculative. Remember also that all mutual funds approved by SEBI are eligible for investment of trust funds under Income Tax Act (NGOs in Maharashtra and Gujarat face some extra restrictions).

Therefore, if you receive a letter from your bank, don’t offload your investments straight away. First establish that your bank is following a clear legal procedure, based on authentic sources. Secondly, consult your advisers. They may even suggest that you make a representation or approach the courts for relief. Third, take a decision based on your evaluation of the advice and your own situation.

[References:

FAQ on FCRA web-site at http://www.mha.nic.in/fcra.htm

AccountAid Capsule 257, 8-Oct-07]

257: FCRA on Mutual Funds

(8-Oct-07)

FCRA Department has taken the following position on mutual fund investments:

“ Q.29 Can NGOs use the foreign contributions for investment in Mutual

Funds and other speculative investments?

A.29 No. The foreign contributions received after prior permission/ grant of registration under the Act are to be utilized for the purpose for

which they have been received and they are not to be invested in any

speculative investments…. “

Based on this, some banks have started asking their clients holding FCRA accounts with them to disinvest in mutual funds.

[References:

FAQ on FCRA web-site at http://www.mha.nic.in/fcra.htm]

256: Award for Best Accounts

(12-Sep-07)

The Institute of Chartered Accountant of India is inviting participants for the ICAI Awards for Excellence in Financial Reporting for the year 2006-07. This award is presented among seven categories of organizations. NGOs, educational institutions, charitable hospitals and section 25 companies can file their nominations under category VII.

Last date for filing your nominations is 30^th September, 2007. No fee is to be paid for entry. At present very few NGOs are filing their nominations, so there are good chances that your organization may get the first or the second award.

The entry form and conditions for entry are given on the ICAI website http://www.icai.org/icairoot/announcements/announ1077.pdf The nominations should be sent to the Technical Directorate, The Institute of Chartered Accountants of India, ICAI Bhawan, Post Box No.7100, Indraprastha Marg, New Delhi – 110 002. E-mail: research@icai.org and tdte@icai.org .

[References:

ICAI website http://www.icai.org/icairoot/announcements/announ1077.pdf]

255: Free Software for NGOs

(29-Aug-07)

NASSCOM Foundation, India and Tech Soup, USA have launched an initiative to give legal software at nominal charges to NGOs in India. About 35,000 NGOs are likely to be eligible to receive such software.

To get the software, you have register online at Big Tech web-site giving your tax exemption [under section 12A or 10(23(c)] and FCRA approval number. After this you can select and apply for particular software. A software company is likely to make only one donation per year to your NGO, so plan your requirement carefully. Once your application is approved, you will be asked to pay a small administrative fee. After this the software will be delivered to you. The whole process may take about two weeks.

For more details, please visit Big Tech web-site at http://www.bigtech.in/about-bigtech-program.

In most cases, the donation will be treated as foreign contribution in kind. Please record it in your FC-6, and report the value of the contribution in the annual FC-3.

[References:

NASSCOM Foundation http://www.nasscomfoundation.org/newsite/

TechSoup: www.techsoup.org/

‘Microsoft to Boost Charity in India’, Washington Post, http://www.washingtonpost.com/wp-dyn/content/article/2007/08/27/AR2007082700699_pf.html

‘New NASSCOM programme to aid NGOs’, ZDNet India, http://www.zdnetindia.com/index.php?action=article&prodid=11717&chid=126&Ref=Software

254: Precautions for Wire Transfers

(14-Aug-07)

Reserve Bank of India has recently issued a circular regarding wire transfers (TTs or Telegraphic Transfers). This circular is intended to prevent misuse of wire-transfers by terrorists and other criminals.

Accordingly, if you are expecting funds to be transferred to your account, ask the donor agency to include the following information with the payment message:

1. Their bank account number. If there is no bank account number, then a unique reference number must be included.

2. Their name and address

Banks have been asked to withhold any transferred funds till this information becomes available. This applies to all international transfers, no matter what the size of the transfer.

Similar conditions apply to domestic transfers of Rs.50,000 or more.

[References:

RBI Circular: DBOD.AML.BC No 77/14.01.001/2006-07 dated April 13, 2007

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=3415&Mode=0]

253: FCRA Bill to be modified?

(27-Jul-07)

In a pleasant surprise, some Congress heavy-weights have supported the NGO sector in its campaign to rationalise the FCRA Bill 2006. In a meeting on Wednesday, the leaders stressed on “increased safeguards” to ensure “transparency and natural justice” while taking any steps to prevent the misuse of such funds.

In a balanced editorial, Indian Express has also called for avoiding paranoia regarding foreign funds, while agreeing to the need for reasonable precautions: "Another problem is the ‘home ministry mindset’ that heavily informs this piece of legislation currently... Instead of putting large collectivities under the bureaucratic scanner, we need to efficiently zero in and screen out money flows from only those elements and agencies that pose a credible threat to the country. Precautions, not paranoia, should be the watchword."

[References:

'Foreign funding Bill: Cong for changes', Indian Express, Posted online: Thursday, July 26, 2007, http://www.indianexpress.com/printerFriendly/206926.html

'Colour of money: Indian Express, Posted online: Friday, July 27, 2007, http://www.indianexpress.com/printerFriendly/207120.html]

252: Filing FC-3 Online - optional

(16-Jul-07)

Online filing of FC-3 has been introduced by FCRA department recently. This is an optional facility for the time being.

You can continue to file your paper FC-3 as before, if you do not wish to use online filing.

[References:

AccountAid Capsule 227, 251

http://mha.nic.in/fcraweb/fc_login.aspx

http://mha.nic.in/fcraweb/fc_fc3_help.htm]

251: How to file FC-3 Online

(16-Jul-07)

First you have to create your user ID and password (http://mha.nic.in/fcraweb/fc_login.aspx).

Then you need to login and fill up the form while online. Step by step instructions are given at http://mha.nic.in/fcraweb/fc_fc3_help.htm.

After the form has been filled, and you have checked it, you have to file it by clicking on 'submit'.

Then you should take a printout of the online return and sign it. Send the form by registered post to MHA within seven days. Also send the usual printed audit report (part of FC-3), and audited accounts with the printout.

[References:

AccountAid Capsule 227, 252

http://mha.nic.in/fcraweb/fc_login.aspx

http://mha.nic.in/fcraweb/fc_fc3_help.htm]

250: Safeguarding Account Payee cheques

(13-Jul-07)

You may think that by marking a cheque 'a/c payee, not negotiable' it remains quite safe. We ourselves have told you this in the past.

Unfortunately, this is not true any more. Consider the following two cases:

1. A donor agency sends an account payee draft of Rs.3,80,000 payable to an NGO called 'Sravanti'. Some person steals the draft, opens an account in the name of 'Sravanti Chakraborty', and encashes the cheque. Police are invesitgating the case.

2. A firm issues an 'a/c payee, not negotiable' cheque to an employee. The employee deposits the cheque in H bank's drop box. The cheque is stolen by someone, who opens an account in the same name in Bank S, and encashes the cheque. H Bank simply denies that the cheque was ever deposited in their branch. Police simply don't bother, as the amount is too small.

What are the lessons to be learnt?

First, if you are issuing a cheque, make it by writing the person's name, account number and bank / branch also. E.g., the draft could have been made in name of 'Sravanti's a/c no. 246129 with XYZ bank, Maldah'.

Second, if you are deposting a cheque that you have received, insist that the bank stamps the deposit slip, and a bank officer signs / initials the slip.

Third, reconcile your bank account statement every month with your account books.

You make your money with a lot of hard work. These simple precautions will help safeguard it.

249: Fraud Alert: funds for charity!

(13-Jul-07)

The following is a typical sample. Its simplicity itself is a warning.

However, as scamsters say, a sucker is a born every minute. Just make sure that you or your frineds don't fall for this kind of a trick.

---------------------------------------------

----- Original Message -----

From: "Mrs.Tina Smith" <tina2007smith2007@yahoo.com>

To: <accountaid@vsnl.com>

Sent: Thursday, 12 July, 2007 10:11 AM

Subject: CHARITY DONATIONS

> Dear beloved,
> I'm Tina Smith from London, I have some funds to donate
> for charity in your country .
> Pls if you can be of help, get back to my
> lawyer for more details:
> Name:Barrsiter Bill Carson
> Phone:+44 702 401 4791
> Email:billis_chambers@yahoo.co.uk
> Thanks,
> Mrs.Tina Smith

------------------------------------------------------

If you receive this kind of an e-mail, just ignore it. Or better still, send it to your friends, with a warning.

248: Fraud Alert: Grants by Lottery!

(12-Jul-07)