My provisional 12A, 80G was issued in 14th January, 2025. The document says :
The institution or fund shall apply for approval within 6 months of commencement
of the activities or at least 6 months prior to the expiry of the period of provisional
approval, whichever is earlier.
If I have missed the former conditions, what will happen to me? What should I do in this case?
My team member is asking if we should deduct 10% from their consultancy fees? Earlier my CA had suggested even professional fees deduction is fine.
Since you have commenced charitable activity and not applied for conversion of provisional to regular registration, it would be possible after getting condonation for delay from CIT effective 1.10.2014. You may file Form 10AB for conversion and approach the CIT for granting condonation based on reasonable cause for delay for proceeding with conversion.
I do not understand your second question fully. I assume you are asking whether 10% (fee for professional service) deduction should be done or 2% (fee for techncial service) under section 194J. Please see below for selection
‘Fees for Professional services ” means services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession notified by the Board for the purposes of section 44AA or of this section
“Fees for technical services” means any consideration (including any lump sum consideration) for the rendering of any managerial (running or management of business), technical (technical expertise) or consultancy (advisory) services (including the provision of services of technical or other personnel) but does not include consideration for any construction, assembly, mining or like project undertaken by the recipient or which would be income chargeable under the head “Salaries”.
If there is doubt between FPS and FTS, please deduct higher rate since this is just a withholding tax.