"Non-FCRA listed NGOs may have to pay tax on foreign oxygen device gifts"

7th May,2021

"Non-FCRA listed NGOs may have to pay tax on foreign oxygen device gifts"


Indian non-benefit associations and people getting oxygen concentrators as blessings from abroad may wind up paying labor and products expense and customs obligation on them despite the fact that the public authority has offered alleviation on the gadgets, which are hard to find during the progressing second Covid-19 wave.

The public authority has postponed incorporated GST and customs obligation on oxygen concentrators that are talented from abroad or imported. In any case, specialists said numerous organizations and non-benefit associations without a FCRA permit may in any case be obligated to pay these taxes.The Foreign Contribution (Regulation) Act is set off on account of non-benefit foundations, specialists said. Just non-benefit substances with a legitimate FCRA enlistment can lawfully get beneficent assets and articles from contributors outside India.

"While the public authority has reported that there would be no GST or customs obligation on imported oxygen concentrators, this could in any case be an issue under FCRA," said Amit Maheshwari, charge accomplice at AKM Global, an expense counseling firm. "For any non-benefit substances not having a FCRA permit or revenue driven elements getting these gear as blessings, there could be questions later on under FCRA. We trust the public authority would come out with an explanation in this regard."Even certain people who import oxygen concentrators could confront charges.

"There is no coherent differential for various rates when oxygen concentrators are imported by people and other legal bodies/help organizations. The exception qualification and the periodicity should be tried via a legal survey," said Abhishek A Rastogi, an accomplice at Khaitan, a law firm.The government initially sliced iGST on oxygen concentrators to 12% from 28% for individual use. This was subsequently diminished to nil following a public clamor.