Money receved from abroad for pass to another country

Originally posted by : SUNDARARAJ. P
	Dear Sirs, One of my boss a individual  is in the process of receiving money from abroad for pass to another country under 1% commission basis, since the designated country not allowed fund  transfers from the transferror country directly. Could any body  explain What is the Income Tax procidure and FEMA rules compliances applicable for this transaction.

Dear Sirs

The  transaction is quite simple: "RECEVING  NGO FUNDS FROM ONE COUNTRY AND TRANSFER THE SAME TO  ANOTHER COUNTRY AFTER DEDUCTING THE ELIGIBLE COMMISSION”

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Is it legally allowable deal or not?  

In case legally allowed, what is the compliance procedure according  IT Act and FERA.   

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I am expecting some answers from experts. 

FOR INFORMATION: 

1.6.2 Regarding transfer of FCRA funds to NGOs in other countries, under the prevailing FCRA laws it does not seem to be permissible. FCRA provides that no funds can be transferred to NGOs which are not registered under FCRA. An NGO registered in another country is certainly not subject to FCRA provisions and therfore, will not have FC registrations. The FCRA Act has not envisaged the possibility of transferring funds to NGOs in other countries and therefore, without any exception it bars the transfer of FC funds to NGOs which are not registered under FCRA.

1.6.3 Therefore, in our opinion, NGOs can not transfer FCRA funds to other countries, nor can they have any direct activities outside India from FCRA funds.The only exception would be the NGOs registered under section 10(23C)(vi),which can have limited activities out side India subject to the provisions of FEMA. Even such NGOs cannot transfer FCRA funds to other NGOs or entities outside India. Therefore, FCRA funds under no circumstances can be transferred out of India, activities outside India (if any) has to be done from domestic

source:

https://www.vaniindia.org/~vaniindi/Download/Standards&NormsOctober08-Issue2.pdf