CERTIFICATION

One of the most precise & important service of any chartered Accountants is issuance of certificates to its client required for various purposes under different applicable rules & regulation. Broadly, following types of certificates are being needed by the business houses depending upon there constitution / the privileges being enjoyed by them under the law, financial arrangement with the financial institution, benefit & deductions to be claimed under statue and periodical compliance of applicable rules & regulation.

Generally, following types of certificates are needed to carry on business activities in India:

•        Certificates on the basis of financial books of accounts and annual financial statements.

•        Certificates on the basis of statutory records being maintained under Indian Companies Act, 1956 

              and other applicable laws.

•        Certification of statutory liabilities

•        Certification of Fare Values of Shares for the purpose of merger/ de-merger, Buy Back ,         

          Allotment of further shares and transfer of shares from resident to non resident.

•        Certificates for foreign remittance to be made by resident in India to foreign entity outside India u/s 

              195 of the Income Tax Act,1961

•         Net worth Certificates required for the purpose of Bank finances, furnishing of Bank guarantee and 

               issuance of Visa by Embassy.

•         Certification of arms length price u/ 92 of the income Tax Act, 1961.

•         Utilization certificates of various grants being released by Govt. of India to NGO’s, Statutory Bodies, 

                 Autonomous Bodies, charitable organizations.

•       Certificates for claiming various deductions & exemption under various rules & regulation.be registered 

                 under the Societies Registration Act, 1860 or the Indian Trusts Act, 1882 or section 25 of the 

                 Companies Act, 1956;

(ii) be in existence for at least three years and have made significant contribution in chosen area of activity. For this purpose, the association should have spent at least Rs.6,00,000 over last three years on its activities, excluding administrative expenditure. Statement of Income & Expenditure duly audited by Chartered

Accountant for last three years may be enclosed to substantiate financial parameter.

Q What is the procedure for filing of FC-3 returns?

A.20 An association permitted to accept foreign contribution is required under law to maintain separate set of accounts and records exclusively for the foreign contribution received and utilised and submit an annual return, duly certified by a Chartered Accountant, giving details of the receipt and purpose-wise utilisation of the foreign contribution. The return is to be filed for every financial year (1st April to 31st March) within a period of nine months from the closure of the year i.e. by 31st December each year. Submission of even a ‘Nil’ return, if there is no receipt/utilization of foreign contribution during the year, is mandatory, under law.

The return is to be submitted, in prescribed Form FC – 3, duly accompanied with the balance sheet and statement of receipt and payment, which is certified by a Chartered Accountant.