FCRA 1976 PDF
49 OF [31st March, ] An Act to regulate the acceptance and utilisation of foreign contribution or foreign hospitality by certain persons or associations. It may be pertinent to point out here that it was the Congress, under the stewardship of Manmohan Singh, that replaced the original FCRA, Interestingly, the FCRA law deemed Indian companies as “foreign” if overseas residents held more than 50 per cent of the shareholding.
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Essential Requirements A Bank Fcga Open a separate bank account for the receipt and utilisation of foreign contribution in a bank of your choice and furnish particulars of the same at the appropriate place. In case no application for renewal of registration is received or such application is not accompanied by the requisite fee, the validity of the certificate of registration of such person shall be deemed to have ceased from the date of completion of the period of five years fcrs the date of the grant of registration.
The bank shall also send a report containing the above details to the Central Government within thirty days from the date of such last transaction in respect of receipt of any foreign contribution in excess of one crore rupees or equivalent thereto in a single transaction or in transactions within a duration of thirty days, by any person, whether registered or not under the Act.
Foreign Contribution (Regulation) Act, – Wikipedia
Besides, given that the right to freedom of association is part of the Universal Declaration of Human Rights article 20a violation of this right also constitutes a human rights violation. With the Lok Sabha passing the law without any debate, the legislators lost the opportunity to ask why a long dead act was being brought back to life.
With liberalisation which allowed foreign firms to own up to per cent in Indian companies, the FCRA had become 9176 bit of a relic and its narrow definition of what constituted “foreign” even more so. Any information or intimation about political or speculative activities of a person shall be furnished to the Secretary to the Government of India in the Ministry of Home Affairs, New Delhi.
The applications for obtaining registration or prior permission shall have to be made electronically on-line, and shall have to be followed by forwarding the hard copy of the on-line application, duly signed, together with the required documents within thirty days of the submission of the on-line application, failing which the request of the person shall be deemed to have ceased.
Time Taken to Dispose Application An application for registration is normally disposed within six months. It is advisable to obtain a certificatein the format incorporated at the end of the application form, from any of the competent authority mentioned therein viz. Proper Filing of Application Please familiarise yourself with the provisions of the Foreign Contribution Regulation Act, and the Foreign Contribution Regulation Rules, fra making an application.
Somewhere in the minutiae of the Finance Bill fxra hidden a paragraph which states: New provision has also been made for management of foreign contribution and assets created out of such contribution of persons whose certificates have been cancelled.
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An association granted prior permission or registration under the Act can receive the foreign contribution and subsequently utilise it using a single designated bank account, as intimated in the application form. The Act also seeks to regulate flow of foreign funds to voluntary organizations with objective of preventing any possible diversion of such funds towards activities detrimental to the national interest and to ensure that such individuals and organizations may function in a manner consistent with the values of sovereign democratic republic.
It shall be accompanied by a fee of Rs. Remember to enclose copies of the following documents vcra your application —.
Foreign contribution received by a candidate for election, referred to in section 21, shall be furnished in the prescribed Form within forty-five days from the date ffra which he is duly nominated as a candidate for election. A judgment by the Delhi high court in held that both the Bharatiya Janata Party and the Congress were guilty of receiving donations to their party funds from the Indian subsidiaries of a “foreign” company, in contravention of the FCRA Act.
Open a separate bank account for the receipt and utilisation of foreign contribution in a bank of your choice and furnish particulars of the same at the appropriate place.
Salient Features of the Rules Guidelines for declaration of an organisation to be of a political nature, not being a political party have been prescribed. Consequently, the earlier Act, viz. Any move to condone an act that was in contravention of the old law would require an amendment, even though it has been repealed. Chartered Accountants, before certifying the accounts of an association in form FC — 3, must ensure that they have been prepared in accordance with the provisions of the Foreign Contribution Regulation Act, and the Rules framed thereunder.
Dcra person intending to transfer the foreign contribution may make an application to the Central Government in the prescribed Form.
There are very many cases of companies who have provided grant to various Indian organisations without FCRA registration or prior permission. What would be on the mind of India’s newest voter waiting to press the EVM button in Types of Frca i Registration under section 6 1 a ; and, ii Prior permission under section 6 1A.
Applications made for registration or prior permission under the repealed FCRA, but not disposed of before the date of commencement of these rules shall be deemed to be an application for registration or prior permission, as the case may be, under the new Rules, subject to the condition that the applicant furnishes the prescribed fees for such registration or prior permission, as the case may be.
If the foreign contribution relates to articles or foreign securities, the intimation shall be submitted in the prescribed Forms. Interestingly, the FCRA law deemed Indian companies as “foreign” if overseas residents held more than 50 per cent of the shareholding in such firms. An application for seeking prior permission to accept foreign contribution is to be made in Form FC — 1A and for grant of registration in Form FC — 8 respectively.
Every certificate of registration issued to a person shall be liable to be renewed after the expiry of five years from the date of its issue on proper application and application for its renewal shall have to be made in the prescribed form accompanied by a fee of Rs.
The fee for obtaining registration or prior permission would be Rs. Expenditure constituting ‘Administrative expenses’ has been clearly defined. This page was last edited on 19 Novemberat Every bank shall send a report to the Central Government within thirty days of any transaction in respect of receipt of foreign contribution by any person who is required to obtain a certificate of registration or prior permission under the Act, but who was not granted such certificate or prior permission as on the date of receipt of such remittance.
Time to repeal the FCRA
Salient Features of the Act Any association granted prior permission or registered with the Central Government under Section 6 or under the repealed FCRA,shall be deemed to have been granted prior permission or registered, as the case may be, under FCRA, and such registration shall be valid for a period of five years from the date on which the new Act has fcr into force. Ultimately courts can strike down such amendments.
With the state wooing foreign investment, Indian businesses, too, helped themselves to foreign funds. B Documents Remember to enclose copies of the following documents with your application — Certifed copy of registration certificate or Trust deed, as the case may be; Details of activities during the last fca years; Copies of audited statement of accounts for the past three years Asset and Liabilities, Receipt and Payment, Income and Expenditure ; Commitment letter from foreign donor specifying the amount of foreign contribution only with prior permission application ; Copy of project for which foreign contribution was solicited is being offered only with prior permission application fcda If functioning as editor, owner, printer or publisher of a publication registered under the Press and Registration of Books Act,a certificate from the Press Registrar that the publication is not a newspaper in terms of section 1 1 of the said Act.
In case the foreign contribution is proposed to be transferred to a person who has not 9176 granted a certificate of registration or prior permission by the Central Government, the person concerned may apply for permission to the Central Government to transfer a part of the foreign contribution, not exceeding ten per cent, of the total value of the foreign contribution received.
Whoever accepts, or assists any person, political party or organisation in accepting any foreign contribution or any currency from a foreign source, in contravention of the provisions of the Foreign Contribution Regulation Act,or the rules made thereunder, fcrs be punished with imprisonment for a term, which may extend to five years, or with fne or with both.
Officials say the amendment had to be brought to give relief to the country’s two largest political parties from a legal tangle they had managed to walk into. However, such fcta which fcr newly established and do not have proven track record of functioning may also receive foreign contribution for specific activities, for a specific purpose fdra from a specific source after seeking project based prior permission PP from the Ministry of Home Affairs.
However, the old law as well as its successor – the FCRA 197 continued to define as “foreign” contribution any donation made by a firm which had more than 50 per cent foreign-owned shareholding. In the cash book and ledger account on double entry basis, where the FC relates to currency received and utilised.