Non-FCRA listed NGOs may have to pay tax on foreign oxygen device gifts – Times of India

Indian non-revenue organisations and people getting oxygen concentrators as gifts from abroad may find yourself paying items and companies tax and customs obligation on them regardless that the federal government has provided reduction on the units, that are in brief provide throughout the ongoing second Covid-19 wave.
The authorities has waived built-in GST and customs obligation on oxygen concentrators which can be gifted from abroad or imported. However, specialists stated many firms and non-revenue organisations with out an FCRA licence may nonetheless be liable to pay these taxes.
The Foreign Contribution (Regulation) Act is triggered within the case of non-revenue establishments, specialists stated. Only non-revenue entities with a sound FCRA registration can legally obtain charitable funds and articles from donors outdoors India.
“While the government has announced that there would be no GST or customs duty on imported oxygen concentrators, this could still be an issue under FCRA,” stated Amit Maheshwari, tax companion at AKM Global, a tax consulting agency. “For any non-profit entities not having an FCRA licence or for profit entities receiving these equipment as gifts, there could be questions later on under FCRA. We hope the government would come out with a clarification in this regard.”
Even sure people who import oxygen concentrators may face taxes.
“There is no intelligible differential for different rates when oxygen concentrators are imported by individuals and other statutory bodies/relief agencies. The exemption eligibility and the periodicity need to be tested by way of a judicial review,” stated Abhishek A Rastogi, a companion at Khaitan, a regulation agency.
The authorities first slashed iGST on oxygen concentrators to 12% from 28% for private use. This was later lowered to nil following a public outcry.
(This story was first printed in Economic Times on May 7, 2021)

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