C Shivakumar/
Chennai:
Two different entities of non-governmental organization Green Peace
India—Green Peace India Society and Green Peace Environment Trust ---
are under the scanner of Income Tax department for tax evasion and
violation of provisions of Foreign Contribution Regulation Act (FCRA)
2010.
An Income Tax source said that Green Peace India Society, located in
Gopalapuram here, is under the scanner for violation of Section 8 of
Foreign Contribution Regulation Act by spending more than 50 per cent
of the donation received from abroad on administrative expenses.
As per the FCRA act, the person or entity, who is registered and
granted a certificate or given prior permission under FCRA and
receives any foreign contribution, shall not defray as far as possible
such sum, not exceeding 50 per cent of such contribution, received on
a financial year to meet administrative expenses. And if the
administrative expenses exceed 50 per cent of the foreign
contribution, it may be defrayed with prior approval of the Central
Government.
The source said that during an assessment for the year 2011-12, which
is done for the previous financial year (2010-11) revealed that Green
Peace India Society spent more than 60 per cent of the foreign
donation it received from abroad on administrative expenses. The
assessment revealed that of the Rs 5.59 crore donations the society
received, Rs 5.11 crore alone came from The Netherlands.
It was found that besides spending about 60 per cent of the amount on
administrative expenses, the society also spent Rs 8 lakh worth funds
on foreign travel, accommodation, visa fee etc for employees who were
working for Green Peace Environment Trust. “Both the Trust and Society
are separate entities although the trustees, all of whom are Indians,
are same. However, the Society can’t use its funds to take care of the
employees of the trust,” the source revealed.
It is also learnt that based on the assessment, it was found that
there was tax violation worth Rs 2.48 crore. The Income Tax has sent a
notice to Green Peace India Society on March 2014 to pay taxes worth
Rs 2.48 crore following which they went on appeal within a month by
paying 50 per cent of the tax demanded.
Similarly, the assessment for the year 2011-12 of Green Peace
Environment Trust, formed in 2001, highlighted tax violations. It was
found out that the Trust paid Rs 37.47 lakh on travel expenses of
volunteers as well as administrators of Society, which is totally a
different entity. The tax evasion by the Trust was Rs 1.49 crore and
they have paid 50 per cent of it and went on appeal.
The source also revealed that the income tax department has approached
Ministry of Home Affairs to take necessary action for FCRA violation
Chennai:
Two different entities of non-governmental organization Green Peace
India—Green Peace India Society and Green Peace Environment Trust ---
are under the scanner of Income Tax department for tax evasion and
violation of provisions of Foreign Contribution Regulation Act (FCRA)
2010.
An Income Tax source said that Green Peace India Society, located in
Gopalapuram here, is under the scanner for violation of Section 8 of
Foreign Contribution Regulation Act by spending more than 50 per cent
of the donation received from abroad on administrative expenses.
As per the FCRA act, the person or entity, who is registered and
granted a certificate or given prior permission under FCRA and
receives any foreign contribution, shall not defray as far as possible
such sum, not exceeding 50 per cent of such contribution, received on
a financial year to meet administrative expenses. And if the
administrative expenses exceed 50 per cent of the foreign
contribution, it may be defrayed with prior approval of the Central
Government.
The source said that during an assessment for the year 2011-12, which
is done for the previous financial year (2010-11) revealed that Green
Peace India Society spent more than 60 per cent of the foreign
donation it received from abroad on administrative expenses. The
assessment revealed that of the Rs 5.59 crore donations the society
received, Rs 5.11 crore alone came from The Netherlands.
It was found that besides spending about 60 per cent of the amount on
administrative expenses, the society also spent Rs 8 lakh worth funds
on foreign travel, accommodation, visa fee etc for employees who were
working for Green Peace Environment Trust. “Both the Trust and Society
are separate entities although the trustees, all of whom are Indians,
are same. However, the Society can’t use its funds to take care of the
employees of the trust,” the source revealed.
It is also learnt that based on the assessment, it was found that
there was tax violation worth Rs 2.48 crore. The Income Tax has sent a
notice to Green Peace India Society on March 2014 to pay taxes worth
Rs 2.48 crore following which they went on appeal within a month by
paying 50 per cent of the tax demanded.
Similarly, the assessment for the year 2011-12 of Green Peace
Environment Trust, formed in 2001, highlighted tax violations. It was
found out that the Trust paid Rs 37.47 lakh on travel expenses of
volunteers as well as administrators of Society, which is totally a
different entity. The tax evasion by the Trust was Rs 1.49 crore and
they have paid 50 per cent of it and went on appeal.
The source also revealed that the income tax department has approached
Ministry of Home Affairs to take necessary action for FCRA violation
No comments:
Post a Comment