Fcra act query

Ravi Kumar Prajapati (CA FINAL) (766 Points)

10 January 2016  

Dear freinds and professionals i have query in foreign contributory regulation act which is applying on my employer which is an TRUST/NGO and registered in FCRA where i am working as internal auditor. so my query is as follows :

1. whether a TRUST/NGO can pay salary to its staff, water and electricity expenses, and purchase new computers for his employees from its FCRA Account..? and if yes than at what extent..or %?

2. TDS refund is received in FCRA account which is domestic in nature..? kindly tell me whether it is possible to receive TDS refund in FCRA account..? 

and tell me the consequences if we are violating the FCRA provisons on the above grounds..?