Project Registration & Management

Submission of Proposal:

After endorsement by Dean (R&D) it is handed over to respective PI for onward transmission. Normally, this process takes 1 day.

Registration of the Project:

If the registration form is duly filled up and signed, it is forwarded for signing of R&D officials. Finally, a project number is assigned and a copy is also sent to respective PI as well as Co-PI. Normally, it takes 1 or 2 days.

Once the Project is registered funds are raised through issue of invoice / Grant-in-Aid Bill for asking funds from funding agencies.

Cheque/Demand Draft/RTGS/NEFT:

Once Cheque/Demand Draft is received in R&D office it is deposited in bank for clearance and when it is cleared it is credited in respective project if the project has already been registered. In case of direct credit of funds in bank account through RTGS/NEFT or any other modes it is observed that funding agencies do not provide any reference regarding the project or PI due to which there is difficulty in tracing the destination of funds. Hence, these type of Payments are being mailed to PI's. This might take several days.

Overheads:

Once the grant is received OH is charged from the project account at the prescribed rates. It takes time generally one week.

GST:

In case of consultancy project service tax is charged from the project account in accordance with the point of taxation rules of service tax i.e. at the time of issue of invoice or receipt of grant, whichever is earlier.

Utilization Certificate and Statement of Accounts:

Generally it is sent to the funding agencies at the end of financial year so that the funding agency release the grant for next financial year. The process time in UC is 2-3 days. Fellowship UCs are prepared by Salary Cell.

Project Closure &. Completion:

If all projects dues of expenditure are cleared and the PI certified the completion of project activity, the project can be closed and the positive balance is refunded back to funding agency, However if the project has a negative balance then negative amount is mentioned in no dues form and final UC is sent to funding agency with negative amount. Once the amount is received from funding agency the negative balance is set off. Submission of the project completion report to funding agency is made by respective PI's. In process of closure of project and obtaining the no-dues from different cells in R&D it takes a period of 3-4 days.

GST / TDS

Q1. What is GST invoice?

A1. GST invoice is an invoice issued for taxable supply of goods & services. Tax invoice broadly contains details like description, quantity, value of goods/service, tax charged thereon and other particulars as may be prescribed.

Q2. What are the information requirement to generate the GST invoice?

A2: Following are the information required to prepare the invoice:

i. Billing Address of funding Agency

ii. GST No. of the funding Agency

iii. Project Number registered in DORD Office

iv. Amount of invoice (as per MOU/ Letter)

v. Installment/ Milestones for which invoice to be created (as per MOU/ Letter)

vi. Whether GST is payable on reverse charge basis

Q3. What are other types of invoices?

A3: Pro Forma invoice: Pro forma invoice is a document that provides information regarding the particulars of the goods and/or services yet to be delivered to the buyer/customer. It details estimated prices of the available goods and/or services.

It is issued by a supplier/retailer to an enquiring buyer/customer. It is usually issued before the issue of Tax Invoice and is not same as a Tax invoice.

Bill of Supply: A bill of supply is similar to a GST invoice except for that bill of supply does not contain any tax amount as the seller cannot charge GST to the buyer.

A bill of supply is issued in cases where tax cannot be charged:

• Registered person is selling exempted goods/services,
• Registered person has opted for composition scheme

A Debit Note is issued by the seller when the amount payable by the buyer to seller increases:

• Tax invoice has a lower taxable value than the amount that should have been charged
• Tax invoice has a lower tax value than the amount that should have been charged

A Credit Note is: issued by the seller when the value of invoice decreases:

• Tax invoice has a higher taxable value than the amount that should have been charged
• Tax invoice has a higher tax value than the amount that should have been charged
• Buyer refunds the goods to the supplier
• Services are found to be deficient
• Funds are not received as per the agreement

Export Invoice:

An export invoice is a GST tax invoice that you create for clients who have the place of supply outside of India. Most often than not, these clients request their invoice to have a foreign currency on it. While most of the format and requirements stay the same as for any other GST tax invoice, some extra details need to be added.

An export invoice should contain the following:

• Name, address, and GSTIN of the supplier - just like in a tax invoice for India;
• Invoice number (a numeric series specific to a financial year);
• Date of issue
• Due date
• Address of service receiver
• Amount (in foreign currency)

GST is not charged on export of services as IITK makes supply of services under Letter of Undertaking without payment of IGST. This LUT is renewed on annual basis.

Q4. Why is TDS deducted by funding agencies?

A4: Due to revision of CBDT Circular no. 18/2017 regarding “Requirement of tax deduction at source in case of entities whose income is exempted under Section 10 of the Income-tax Act, 1961 - Exemption thereof”. Now educational institutions have been removed from the list of entities for which there is no requirement for tax deduction at source (TDS) from the payments made to them and IITK does not have any Tax Exemption Certificate.

Q5. When and how the TDS amount will be credited in Project Account?

A5: DORD has adopted a policy to meet the project deficit caused due to deduction of tax from R&D sources subject to the condition that Form 16A is provided by the funding agency or the amount is updated in Form no. 26AS of IITK. The amount shall be credited in projects account on quarterly basis.

Q6. Information required to provide Form no. 3CH and Form no. 3CI to funding agencies and for other compliances under Section 35(2AA) of Income Tax Act?

A6: a) Form no. 3CG from the funding agency

b) Confirmation from Project Investigator that programme does not purely relate to market research, sales promotion, quality control, testing, commercial production, style changes or routine data collection.

c) Purpose of the Scientific Research Programme [Please give a brief write up on the requirement of research programme indicating the objectives of the programme, stages of implementation, expected results, commercialization prospects, usefulness of the programme in terms of foreign exchange saving and potential for exports.]

d) Details of agreement regarding patent rights and commercialization rights between sponsoring agency and IIT Kanpur, if any

e) Progress report of the project if it is started in previous Financial Year or earlier

f) Details of deduction claimed (year-wise) by the sponsor (funding agency) under section 35(2AA) of the Income-tax Act, 1961 during the last eight years.