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Registration of AIESEC India

 

The Indian Societies Registration Act of 1860 was enacted under the British Raj in India. It provided for the registration of literary, scientific and charitable societies. Under the act, societies might be formed by a memorandum of association (MoA) people associated for any literary, scientific, or charitable purpose. The memorandum of association had to be filed with the Registrar of Societies. The memorandum has to contain the name of the society, its objects and the names, addresses, and occupations of the governing body members by whatever name called duly signed for consent by all the members forming the society.

 

AIESEC is registered as a Society under the 1860 act. Our regristration documents date back to 2003 where we re-registerd ourselves. 

 

PFA Societies Act of 1860, AIESEC in India's MoA, Tax Exemption Letter, PAN Card and Registration Document. Yes we are registered. And yes, WE ARE LEGAL!

 

AIESEC India's PAN Card Number is AABTA3359F (Used while filling 16A form for TDS refund from our clients)

Difference Between NPO and NGO

Non Profit Organisation

Non Governmental Organisation

An NPO hires management personnel and aim to raise substantial funds.

 

 

An NPO uses its extra funds for the purpose of the organization, rather than dividing it between the shareholders and owners of the organization.

 

NPOs are formed for the welfare of the public and solving cultural issues. 

Created by legal persons who are not a part of the government. Usually funds are raised by the government.

 

NGOs use their funds for development of the society, analysis and reporting to the government on social issues.

 

NGOs are usually formed for a social cause like community development, human rights, environment, etc. They usually have charity & service objectives.

Tax Deducted at Source(TDS)

Tax deducted at source (TDS), as the very name implies aims at collection of revenue at the very source of income. It is essentially an indirect method of collecting tax which combines the concepts of “pay as you earn” and “collect as it is being earned.” Its significance to the government lies in the fact that it prepones the collection of tax, ensures a regular source of revenue, provides for a greater reach and wider base for tax. At the same time, to the tax payer, it distributes the incidence of tax and provides for a simple and convenient mode of payment.

What used to happen before, is that a company used to give dividend/income to their clients, and then the Government used to ask these clients to file returns so that income tax is deducted. Thinking logically, every company will have minimum 100 clients/dealers and it wasn't possible for the government to keep following up with all these people for taxes. As per the new TDS rule, tax is deducted from the source, i.e. from the company and the net amount is given to clients. 

TDS problem is faced in iGIP and BD, where companies pay us a reduced realization fee, after cutting TDS and paying tax to the Government. Since we are an NPO registered under Indian Societies' Act, we're not liable to pay taxes. Hence, we need to collect Form 16A from all our companies so that we can get tax refund from the government for the money that has been deducted and paid as taxes. 

 

TDS certificate should be issued within one month from the end of the month in which the income is credited however for credit entries made on 31st March, due date is 7th June.

 

These TDS certificates can be produced at the end of the financeial year while filling IT returns to get a refund. But IT IS IMPORTANT TO MAINTAIN THE SAME.

 

 

TDS Deductions for EP Salaries 

 

The following things need to be kept in mind while taking iGIP requirements :

 

  • The EP salary does not include the TDS Duductions. 

  • If in case there are TDS cuts then the base salary of the EP must be exclusive of the TDS amount. 

  • In this case please make sure the EP obtains a PAN card so that this money can be claimed back ( Though this might take a year ).

Compendium & XPP

The compendium is the legal book of AIESEC which states all the rules and procedures that are to be followed by all LCs and MC in the way we function. It is a long read, but will surely teach you a lot about how the organization functions, various rules related to conferences, memberships, finances, etc. It includes the constitution as well. 

XPP is Exchange Programme Policies which are guidelines on how we need to do exchanges and a framework of regulations that are to be followed by sending entity, hosting entity, EPs and TNs. Violation of XPP can lead to serious legal cases where the violating party has to pay heavy compensation for violation. It is very important for every member to read and know the compendium & XPP, which form the base of all our operations and functions. 

AIESEC India has trademark for the logos that we use for marketing, which can be found in the link given below. 

 

 

 

 

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