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    Form CSR-1: Why it is Mandatory for NGOs?

    Darpan: Why it is Mandatory for NGOs

    The NGO DARPAN was previously maintained by former Planning Commission, which was later replaced by the NITI Aayog from January, 2015. The online Portal is being maintained at present under the guidance of NITI Aayog. It invites all Voluntary Organizations as well as Non-Governmental Organizations to sign up on the Portal. Let us have a look at the process for NGO DARPAN registration, and why this certificate is important.

    A Brief Overview on NGO DARPAN 

      NGO DARPAN is a free facility provided by the NITI Aayog[1]. It is done to help NGO and voluntary organizations to keep them updated about new government schemes as well as grants. This platform is collaboration by the NITI Aayog and the National Informatics Center. It will help build a bond between the NGO and the government. Moreover, after obtaining NGO DARPAN registration, the registration process gives NGO more accountability and creditability. The portal which was started under the PMO has now shifted the management to the NITI Aayog, with help and guidance from the Ministry of Electronics as well as IT. After doing so the portal has become an e-governance application which helps to promote transparent and healthy relationship between the NGO & governments.

    Essential Documents required for NGO DARPAN Registration

    Any NGO or Volunteer Organization which has obtained society registration, Section 8 Company registration or trust registration is eligible to apply for the registration of NGO DARPAN.

    The norms of the 2019 amendment to Companies Act, 2013 concerning CSR were introduced on Jan 22. In light of the new norms, every agency cited under sub-rule (1) will have to secure Darpan registration after filing Darpan Regristation Form on the MCA’s portal. 

    The CSR programmes approved before Apr 1, 2021, shall remain unaffected by these sub-rules provisions. 

     After the successful filing of the form CSR-1, the MCA portal shall generate the unique registration number for future reference. 

    In this way, the MCA will administer a list of all implementing companies, thereby ensuring timely fulfilment of proposed undertakings. The past track record of such agencies can be referred to by the entities & help them decide their engagement for upcoming Darpan undertakings.

    Fundamental Documents required for filing Darpan Regristation

    • PAN Number;
    • NGO’s PAN card
    • Contact details such as contact number and email
    • Digital Signature Certificate and PAN of the Chairperson
    • Details of members serving the organization
    • Registration certificate of Section 8 entity
    • Trust Deed (for agency operating as Trust)
    • Memorandum for a registered Society

    Form CSR-1 should enclose the digital signature of the given individuals: 

    • Directors serving the Section 8 entity
    • Any one of trustees serving the Registered Trust
    • By Secretary/Chairperson in case of Registered Society
    • Authorized signatory in case of a company functioning under the ambit of State Legislature or Act of Parliament
    • A Practising professional like CA or CS in practice 

    Types of NGOs having access to Darpan registration

    NGOs that are legally eligible to furnish Form Darpan are as follows: 

    • An entity functioning u/s 8 of the Act, or a registered society or Trust, registered u/s 12A & 80G of the IT Act, 1961, established by the entity, either single or along with any other entity. 
    • An entity functioning u/s 8 of the Act or registered society or a registered trust, working under Central Government or State Government.
    • Any entity functioning under an Act of a State legislature or Parliament 
    • An entity functioning u/s 8 of the Act, or a registered society or a registered trust, registered u/s 12A and 80G of the IT Act, 1961, 7 has a proven track record of minimum three years in undertaking same activities. 

    Important Points with respect to filing of Darpan

    • CSR-1 form is supposed to be filed with the ROC w.e.f day of April 2021.
    • In the case of a company being formed by a company or group of companies, a maximum of 5 CIN(s) of such entities can be enclosed in the e-form.
    • Email ID is required to be provided in the Form, which is further validated via One Time Password (OTP).
    • The applicant can send One Time Password only after successful Pre-scrutiny of the Form.
    • The One Time Password shall be routed to the registered email ID against one Form. The portal facilitates ten attempts to complete such a task. Once generated, OTP shall remain in effect for 30 minutes. 
    • Applicants failing to fulfil the said task in the given attempt can download the new Form and complete the filing on the same day. 
    • Check the validity of the DIN or PAN of the key management officials such as Directors/CEO/ Authorized Representatives before indulging in the registration process. 
    • Maximum of 10 rows shall be available for providing the details of key management officials of the company. 

    Conclusion

    The advent of Form Darpan has enabled the tax authority to ensure better probing on NGOs’ funding transactions. But that doesn’t imply that it will only benefit the tax authority. The timely filing of Form Darpan would enable the NGOs to curtail the legal hurdles during the funding campaign. Also, this will make them more reliable and transparent.

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