FCRA provisions are essential for keeping the regulations on the NGO. The Foreign Contribution Regulation Act is a consolidating act. The Foreign Contribution Regulation Act scope is to regulate the acceptance and utilization of foreign contribution or foreign hospitality by certain individuals or associations or companies. It is also important to note that Foreign Contribution Regulation Act prohibit acceptance and utilization of foreign contribution or foreign hospitality for any activities detrimental to the national interest and for matters connected therewith or incidental thereto.
Foreign Contribution Regulation Act 2010 power point presentation (ppt slide) by Shalini Singh, BY- SHALINI SINGH, BSC LLB(HONS), GUJARAT NATIONAL LAW UNIVERSITY, during Internship at Biz and Legis Law Firm.
An Act to consolidate the law to regulate the acceptance and
utilisation of foreign contribution or foreign hospitality by certain
individuals or associations or companies and to prohibit
acceptance and utilisation of foreign contribution or foreign
hospitality for any activities detrimental to the national interest
and for matters connected therewith or incidental thereto
Nuances of FCRA | Registration & ComplianceSuhel Goel
A presentation made to comprehend the compliances applicable to NGOs under the Foreign Contribution (Regulation) Act, 2010 {FCRA} and the nuances to be considered.
A Ngo is relevant to get subsidizes from abroad assuming that it has a international funding registration declaration.
Administration of India and outside subsidizing organizations discharges a considerable measure of trusts for the welfare of the underprivileged area of the social order. Then again, such trusts are not legitimately used by a number of such conglomeration. UNO keeps tabs on offering gives to that conglomeration who has done exceptional work in elevating the poor area of the social order. In this way, the right outlook to getting legitimate finances is to channelize your vigor in working for the social order. Assuming that you would like to know how to get a FCRA endorsement, you can counsel us.
Foreign Contribution Regulation Act 2010 power point presentation (ppt slide) by Shalini Singh, BY- SHALINI SINGH, BSC LLB(HONS), GUJARAT NATIONAL LAW UNIVERSITY, during Internship at Biz and Legis Law Firm.
An Act to consolidate the law to regulate the acceptance and
utilisation of foreign contribution or foreign hospitality by certain
individuals or associations or companies and to prohibit
acceptance and utilisation of foreign contribution or foreign
hospitality for any activities detrimental to the national interest
and for matters connected therewith or incidental thereto
Nuances of FCRA | Registration & ComplianceSuhel Goel
A presentation made to comprehend the compliances applicable to NGOs under the Foreign Contribution (Regulation) Act, 2010 {FCRA} and the nuances to be considered.
A Ngo is relevant to get subsidizes from abroad assuming that it has a international funding registration declaration.
Administration of India and outside subsidizing organizations discharges a considerable measure of trusts for the welfare of the underprivileged area of the social order. Then again, such trusts are not legitimately used by a number of such conglomeration. UNO keeps tabs on offering gives to that conglomeration who has done exceptional work in elevating the poor area of the social order. In this way, the right outlook to getting legitimate finances is to channelize your vigor in working for the social order. Assuming that you would like to know how to get a FCRA endorsement, you can counsel us.
Synopsis:
Introduction and Applicability
Objective
Important Definitions
Prohibition to accept foreign contribution
Non-applicability
Registration
Grant of certificate, suspension, cancellation and renewal of certificate
Maintenance of accounts and Audit of accounts
Offences and Penalties
Miscellaneous Provisions
Reporting in various forms under the Act
A Person can be Resident (R) or Non Resident (NR) under both FEMA & I. Tax Acts
A Person can be Resident under one of the Acts & Non Resident under the another
Section 2(v) of FEMA
Section 6 of the ITA, 1961
Taxation of Charitable Trust. Article was published in the Chamber's Journal of June '16. It analyses various provisions of income-tax appliable to NPO /NGO ?Charitable Trust
Objectives & Agenda :
To understand the regulations under Foreign Exchange Management Act, 1999, relating to Transfer of Capital Instruments of an Indian Company by or to a Person resident outside India. In this webinar, we shall look at the various circumstances of such transfers and the conditions to be adhered to. We shall also look at the Pricing Guidelines, Mode of Payment and provisions for Opening of Escrow account and Deferred payment of consideration in transfers between Residents and Non-residents.
The presentation focuses on the Foreign Contribution (Regulation ) Act, 2010, while also covering various Compliances and Reporting Timelines for the Not for Profit Sector under Maharashtra Public Trusts Act, 1950, Lokpal and Lokayuktas Act, 2013 and Income Tax Act, 1961. It also explores the various ways in which an NGO can be established in India with comparison between the same. Lastly, it subsumes the developments in the ambit of Not for profit Organizations including NITI Aayog’s NGO Darpan through which NGOs can apply for Government Grants.
Compounding refers to the process of voluntarily admitting the contravention, pleading guilty and seeking redressal. The Reserve Bank is empowered to compound contraventions under Foreign Exchange Management Act, 1999. In this webinar, we shall understand the provisions of FEMA Act and its regulations relating to Compounding of Offences
To analyse and understand the provisions of Foreign Exchange Management (Adjudication Proceedings And Appeal) Rules, 2000. We shall understand the provisions relating to imposition of penalty, the adjudicating authority, inquiry proceedings and the various aspects of appeal.
Synopsis:
Introduction and Applicability
Objective
Important Definitions
Prohibition to accept foreign contribution
Non-applicability
Registration
Grant of certificate, suspension, cancellation and renewal of certificate
Maintenance of accounts and Audit of accounts
Offences and Penalties
Miscellaneous Provisions
Reporting in various forms under the Act
A Person can be Resident (R) or Non Resident (NR) under both FEMA & I. Tax Acts
A Person can be Resident under one of the Acts & Non Resident under the another
Section 2(v) of FEMA
Section 6 of the ITA, 1961
Taxation of Charitable Trust. Article was published in the Chamber's Journal of June '16. It analyses various provisions of income-tax appliable to NPO /NGO ?Charitable Trust
Objectives & Agenda :
To understand the regulations under Foreign Exchange Management Act, 1999, relating to Transfer of Capital Instruments of an Indian Company by or to a Person resident outside India. In this webinar, we shall look at the various circumstances of such transfers and the conditions to be adhered to. We shall also look at the Pricing Guidelines, Mode of Payment and provisions for Opening of Escrow account and Deferred payment of consideration in transfers between Residents and Non-residents.
The presentation focuses on the Foreign Contribution (Regulation ) Act, 2010, while also covering various Compliances and Reporting Timelines for the Not for Profit Sector under Maharashtra Public Trusts Act, 1950, Lokpal and Lokayuktas Act, 2013 and Income Tax Act, 1961. It also explores the various ways in which an NGO can be established in India with comparison between the same. Lastly, it subsumes the developments in the ambit of Not for profit Organizations including NITI Aayog’s NGO Darpan through which NGOs can apply for Government Grants.
Compounding refers to the process of voluntarily admitting the contravention, pleading guilty and seeking redressal. The Reserve Bank is empowered to compound contraventions under Foreign Exchange Management Act, 1999. In this webinar, we shall understand the provisions of FEMA Act and its regulations relating to Compounding of Offences
To analyse and understand the provisions of Foreign Exchange Management (Adjudication Proceedings And Appeal) Rules, 2000. We shall understand the provisions relating to imposition of penalty, the adjudicating authority, inquiry proceedings and the various aspects of appeal.
This book is a compendium of the Foreign Contribution (Regulation) Act, 2010 along with relevant Rules, Circulars, Notifications, guidelines, and Case Laws. This book provides the annotated text and amended statutory materials for the ease of the reader. It also includes a specially curated ‘Guide to the Foreign Contribution (Regulation) Act, 2010’ & Case Laws digest. The present publication is the latest edition incorporating all the amendments made by the Foreign Contribution (Regulation) Amendment Act, 2020 and is updated up to 1st December, 2020. The coverage of this book includes the following:
· Amendments made by Foreign Contribution (Regulation) Amendment Act, 2020 at a glance
· Guide to Foreign Contribution (Regulation) Act, 2010
o Foreign Contribution
o Exemptions from restriction on accepting Foreign Contribution
o Restrictions on acceptance of foreign hospitality
o Restrictions on social or cultural organisations
o Registration for accepting Foreign Contribution
o Other provisions of Foreign Contribution (Regulation) Act
o Offences and penalties
o Powers of Central Government
o Procedures under FCRA
· Foreign Contribution (Regulation) Act, 2010
o Arrangement of Sections
o Text of Foreign Contribution (Regulation) Act, 2010 as amended by Foreign Contribution (Regulation) Amendment Act, 2020
o Foreign Contribution (Regulation) Amendment Act, 2020
o Appendix: Foreign Contribution (Regulation) Act, 1976
· Foreign Contribution (Regulation) Rules
o Foreign Contribution (Regulation) Rules, 2011 as amended by the Foreign Contribution (Regulation) (Amendment) Rules, 2020
o Foreign Contribution (Acceptance or Retention of Gifts or Presentations) Rules, 2012
· Notifications issued under Foreign Contribution (Regulation) Act, 2010
· Guidelines and Circulars
o Guidelines for Implementation of the provisions of Foreign Contribution (Regulation) Act, 2010;
o Guidelines for consideration of proposals for acceptance of foreign hospitality under Foreign Contribution (Regulation) Act, 2010;
o Exemption from provisions of section 14(3) of Foreign Contribution (Regulation) Act, 2010;
o Standard Operating Procedure (SOP) to open and operate the “FCRA Account”;
o Advisory for Compliance by FCRA NGOs/Associations;
o FAQs on FCRA, 2010
· Notified agencies not to be covered by definition of ‘Foreign Sources’
· Case Laws Digest
Duites and Responsibilities of Public Information Officer under the Right To ...ParthSagdeo2
Salient features of the RTI act and PIOs are officers designated by the public authorities in all administrative units or offices under it to provide information to the citizens requesting information under the Act. Any officer, whose assistance has been sought by the PIO for the proper discharge of his or her duties, shall render all assistance and for contraventions of the provisions of this Act, such other officer shall be treated as a PIO.
Fraud in government-funded programs can occur anywhere – – Medicare fraud, defense contracting fraud, GSA Schedules and other types of government contracting fraud. When an individual sues on behalf of the United States to recover fraudulently obtained funds, this is known as qui tam whistleblower litigation.
RIGHT TO INFORMATION ACT
RIGHT TO INFORMATION WHY?
Democracy requires an informed citizenry.
Transparency of information vital to its functioning.
To contain corruption
Re-define larger framework of Accountability, Democracy, Ethics and Rights.
Under-pins administrative reforms.
Enables Human Rights to be realized.
Harmonize conflicting interests.
RIGHT TO INFORMATION ACT, 2005
The RTI bill was introduced in the Lok Sabha in December 2004.
It was passed by both Houses of the Parliament in may 2005.
The assent of the President was received on 15th June 2005 and act was notified in the Gazette of India on 21st June 2005.
The RTI act has been operational on 12th October 2005 after completion of 120 days from the date of Presidential assent.
SALIENT FEATURES OF THE ACT
Maximum Disclosures
Duty to Publish
Suo motu and web based disclosures
Duty to Furnish
PIO and Deemed PIO
Exemption – As per section 8 and 9 of the Act.
Covers Private Body & Third Party Information
Penalty for defiance.
Independent and Non-judicial appellate mechanism
Empowerment of citizens
DEFINITION OF “INFORMATION” {SECTION 2 (f) & 2(j) of RTI Act, 2005}
Obtaining information in the form of diskettes, floppies, tapes, video cassettes or in any other electronic mode or through printouts where such information is stored in a computer or in any other device.
What is a Public Authority?
“Public Authority" means any authority or body or institution of self- government established or constituted— (a)by or under the Constitution; (b)by any other law made by Parliament; (c)by any other law made by State Legislature; (d)by notification issued or order made by the appropriate Government, and includes any— (i) body owned, controlled or substantially financed; (ii) non-Government organization substantially financed, directly or indirectly by funds provided by the appropriate Government;
A public authority has to fulfill certain obligations as per RTI Act – 2005.
Appointment and qualifications of directorskushGupta65
DIRECTOR IDENTIFICATION NUMBER (DIN) [SECTION 152 (3) AND SECTIONS 153 TO 159]
“Director Identification Number” (DIN)5: DIN means an identification number allotted by the Central Government to any individual, intending to be appointed as director or to any existing director of a company, for the purpose of his identification as a director of a company.
Conversion Ind AS (the converged IFRS standards) in India Dr Biswadev Dash
02/01/2015 when the Press Information Bureau, Government of India, Ministry of Corporate Affairs (MCA) issued a note outlining the various phases in which Indian Accounting Standards converged with IFRS (Ind AS) is proposed to be implemented in India it was a landmark reforms in accounting & reporting sector. With this the Companies other than Banking Companies, Insurance Companies and NBFCs will be covered. Indian Accounting standard is highly precise. Thus Conversion Ind AS (the converged IFRS standards) in India may significantly affect a company’s day-to-day operations and may even impact the reported profitability of the business itself. Of course Conversion brings a one-time opportunity to comprehensively streamline the financial reporting.
The aim of ICDS is that the ICDS shall apply for computation of income chargeable to income-tax under the head “Profits and gains of business or profession” or “Income from other sources”. Thus ICDS has no impact on minimum alternate tax computation for corporate assessees which will continue to be based on ‘book profit’ determined in accordance with currently applicable AS. ICDS is applicable to all taxpayers like corporates/non-corporate or resident/non-resident irrespective of turnover or quantum of income.
The legislation of ICDS stated in the preamble of each ICDS clarifies that
(a) ICDS is applicable for computation of income and not for the purposes of maintenance of books of account; and
(b) In case of conflict between the provisions of ITA and ICDS, the provisions of ITA shall prevail to that extent.
Some critical issues does pop up while the issue of accounting treatment of Future Warranty Claims comes. In fact here the Financial reporting in India is undergoing a drastic transformation owing to the adoption of Indian Accounting Standards (Ind AS) that are converged with IFRSs. Thus
the key issues on Recognition, Measurement and Disclosure requirements for various items are undergoing significant changes in recent past. In the light of above it is important to consider the change in recognition, measurement and disclosure requirements in respect of provisions
carried in the books with respect to warranties offered by Companies.
Indian Companies (Indian Accounting Standards) Rules 2015 notified Ind-AS which come into force from 1st Day of April,2015 and will be implemented in three phases. But there are Exemptions to insurance companies, banking companies and non-banking finance companies shall not be required to apply Indian Accounting Standards (Ind AS) for preparation of their financial statements either voluntarily or mandatorily.
RIGHTS OF VICTIM EDITED PRESENTATION(SAIF JAVED).pptxOmGod1
Victims of crime have a range of rights designed to ensure their protection, support, and participation in the justice system. These rights include the right to be treated with dignity and respect, the right to be informed about the progress of their case, and the right to be heard during legal proceedings. Victims are entitled to protection from intimidation and harm, access to support services such as counseling and medical care, and the right to restitution from the offender. Additionally, many jurisdictions provide victims with the right to participate in parole hearings and the right to privacy to protect their personal information from public disclosure. These rights aim to acknowledge the impact of crime on victims and to provide them with the necessary resources and involvement in the judicial process.
PRECEDENT AS A SOURCE OF LAW (SAIF JAVED).pptxOmGod1
Precedent, or stare decisis, is a cornerstone of common law systems where past judicial decisions guide future cases, ensuring consistency and predictability in the legal system. Binding precedents from higher courts must be followed by lower courts, while persuasive precedents may influence but are not obligatory. This principle promotes fairness and efficiency, allowing for the evolution of the law as higher courts can overrule outdated decisions. Despite criticisms of rigidity and complexity, precedent ensures similar cases are treated alike, balancing stability with flexibility in judicial decision-making.
In 2020, the Ministry of Home Affairs established a committee led by Prof. (Dr.) Ranbir Singh, former Vice Chancellor of National Law University (NLU), Delhi. This committee was tasked with reviewing the three codes of criminal law. The primary objective of the committee was to propose comprehensive reforms to the country’s criminal laws in a manner that is both principled and effective.
The committee’s focus was on ensuring the safety and security of individuals, communities, and the nation as a whole. Throughout its deliberations, the committee aimed to uphold constitutional values such as justice, dignity, and the intrinsic value of each individual. Their goal was to recommend amendments to the criminal laws that align with these values and priorities.
Subsequently, in February, the committee successfully submitted its recommendations regarding amendments to the criminal law. These recommendations are intended to serve as a foundation for enhancing the current legal framework, promoting safety and security, and upholding the constitutional principles of justice, dignity, and the inherent worth of every individual.
Car Accident Injury Do I Have a Case....Knowyourright
Every year, thousands of Minnesotans are injured in car accidents. These injuries can be severe – even life-changing. Under Minnesota law, you can pursue compensation through a personal injury lawsuit.
DNA Testing in Civil and Criminal Matters.pptxpatrons legal
Get insights into DNA testing and its application in civil and criminal matters. Find out how it contributes to fair and accurate legal proceedings. For more information: https://www.patronslegal.com/criminal-litigation.html
NATURE, ORIGIN AND DEVELOPMENT OF INTERNATIONAL LAW.pptxanvithaav
These slides helps the student of international law to understand what is the nature of international law? and how international law was originated and developed?.
The slides was well structured along with the highlighted points for better understanding .
Introducing New Government Regulation on Toll Road.pdfAHRP Law Firm
For nearly two decades, Government Regulation Number 15 of 2005 on Toll Roads ("GR No. 15/2005") has served as the cornerstone of toll road legislation. However, with the emergence of various new developments and legal requirements, the Government has enacted Government Regulation Number 23 of 2024 on Toll Roads to replace GR No. 15/2005. This new regulation introduces several provisions impacting toll business entities and toll road users. Find out more out insights about this topic in our Legal Brief publication.
Military Commissions details LtCol Thomas Jasper as Detailed Defense CounselThomas (Tom) Jasper
Military Commissions Trial Judiciary, Guantanamo Bay, Cuba. Notice of the Chief Defense Counsel's detailing of LtCol Thomas F. Jasper, Jr. USMC, as Detailed Defense Counsel for Abd Al Hadi Al-Iraqi on 6 August 2014 in the case of United States v. Hadi al Iraqi (10026)
4. Introduction
• The Foreign Contribution (Regulation) Act
2010 and The Foreign Contribution
(Regulation) Rules 2011 have been enacted
w.e.f. 01.05.2011.
• The old FCR Act and Rule, 1976 have been
repealed.
5. • The basic purpose of FCRA 2010 as mentioned in the preamble to
the Act is
• “to consolidate the law to regulate the acceptance and utilization of
foreign contribution or foreign hospitality by certain individuals or
associations or companies and to prohibit acceptance and utilization
of foreign contribution or foreign hospitality for any activities
detrimental to the national interest and for matters connected
therewith or incidental thereto.”
6. • The provisions of FCRA 2010 can be broadly classified into the following
three categories :
• (1) Prohibition on certain persons from accepting foreign
contribution.(Ex. Section 3 and section 9 )
• (2) Restriction on certain persons from accepting foreign hospitality.
• (Ex Section 6)
• (3) Regulating the acceptance of foreign contribution and its utilisation
by persons having a definite cultural, economic, educational, religious or
social programme. NPOs are covered under this category. ( Ex. Section
11)
7. What is new?
• a. Consolidates the law to regulate acceptance and utilization
of FC or foreign hospitality (FH) and prohibit the same (i.e. FC
or FH) for any activities detrimental to the national interests;
• b. Prohibit organizations of political nature from receiving FC;-
new items added
8. What is new?
• c. Bring associations engaged in production or broadcast of
audio news or audio – visual news or current affairs through
any electronic mode under the purview of the bill;
• d. Prohibit the use of FC for any speculative business;
• e. Cap administrative expenses at 50% of the receipt of FC;
9. What is new?
• f. Exclude foreign funds received from relatives living abroad;
• g. Permitting maintenance of multiple bank accounts for
utilizing FC.
• h. Make provision for intimating grounds for refusal of
registration or refusal of prior permission;
• i. Provide arrangement for sharing information on receipt of
foreign remittances by the concerned agencies to strengthen
monitoring;
10. What is new?
• j. Make registration to be valid for five years with a provision
for renewal thereof, and also to provide for cancellation or
suspension of registration;
• k. Make provision for compounding of certain offences
11. Prohibition on certain persons
from accepting foreign
contribution
• The following persons are prohibited from accepting foreign
contribution :
• (a) Candidate for election;
• (b) Correspondent, columnist, cartoonist, editor, owner,
printer or publisher of a registered newspaper;
• (c) Judge, government servant or employee of any entity
controlled or owned by the government;
• (d) Member of any Legislature;
12. Prohibition on certain persons
from accepting foreign
contribution
• (e) Political party or its office bearers;
• (f) Organisations of a political nature as may be specified;
• (g) Associations or company engaged in the production or
broadcast of audio news or audiovisual news or current affairs
programmes through any electronic mode or form or any
other mode of mass communication;
• (h) Correspondent or columnist, cartoonist, editor, owner of
the association or company referred to in (g) above.
13. However,foreigncontributioncanbeacceptedbythe
above-mentionedpersonsinthefollowingspecific
situation:
• (a) By way of remuneration for himself or for any group of persons
working under him;
• (b) By way of payment in the ordinary course of business transacted in
or outside India or in the course of international trade or commerce;
• (c) As agent of a foreign source in relation to any transaction made by
such foreign source with the Central or State Government;
• (d) By way of gift or presentation as a member of any Indian delegation.
However, the gift or present should be accepted in accordance with the
rules made by the Central Government;
15. REGISTRATION: GUIDELINES:
• 1. Application under section 11(1) to be made to the central government in form
FC-3.
• 2. HARD COPY of online application duly signed by chief functionary of
association with required documents to be sent to central government.
• 3. The above mentioned hard copy should reach the central government within
30 days of submitting online failing which request will have deemed to be
ceased.
• 4. A new fresh online application can then be made only after 6 months.
• 5. Person seeking registration will have to open an exclusive bank account to
receive such contribution.
16. REGISTRATION: GUIDELINES:
• 6. Person may open various bank accounts in various bank for
utilization of contribution once received but intimation to be
given on plain paper to the SECRETARY , MINISTRY IF HOME
AFFAIRS ,New delhi within 15 days on opening the account.
• 7. Application for registration with a fee of Rs 2000 only
• 8. Fee is to be remitted by a demand draft on banker’s cheque
in favour of “ PAY AND ACCOUNTS OFFICER, MINISTRY OF
HOME AFFAIRS” payable at delhi
17. Application for grant of prior
permission
• 1. The online application to be made on form FC-4.
• 2. To be accompanied with a fee of Rs1000 only
19. RENEWAL OF REGISTTRATION
CERTIFICATE:
• (i) Person shall apply to central government in from FC-5 ,six months
before the date of expiry.
• (ii) If a multi-year project then the application is to be given 12
months before expiry.
• (iii) Application for renewal is to be accompanied with a fee of Rs500
only.
• (iv) If no application is made within requisite time and with fee. The
registration is deemed to have ceased on expiry of 5 yrs.
20. RENEWAL OF REGISTTRATION
CERTIFICATE:
• (v) If the person provides adequate grounds for late submission then
the application may be accepted but not later than 4 months after
expiry of registration.
• (vi) A person can only transfer foreign contribution to other
registered person by filling up the FC-10 form and taking prior
permission of the central government under section 11 of the said
act.
• (vii) If the same has to be made to an unregistered person the
application has to be countersigned by the district magistrate
having jurisdiction in the place.
21. Power to Prohibit
• The Central Government can —
• (a) prohibit any person or organisation not specified in
section 3 of the FCRA act, from accepting foreign contribution.
• (b) require any person not specified in section 11 of the said
act, to give information about the amount of FC, source of FC
and the manner in which the foreign contribution or
hospitality. was utilized.
22. Powerof Central Governmentto prohibit
• - The Central Government may—
• (a) prohibit any person or organization not specified in section 3,
from accepting any foreign contribution;
• (b) require any person or class of persons, not specified in section 6,
to obtain prior permission of the Central Government before
accepting any foreign hospitality;
23. Powerof Central Governmentto prohibit
• (c) require any person or class of persons not specified in section
11, to furnish intimation within such time and in such manner as
may be prescribed as to the amount of any foreign contribution
received by such person or class of persons as the case may be, and
the source from which and the manner in which such contribution
was received and the purpose for which and the manner in which
such foreign contribution was utilised;
24. Powerof Central Governmentto prohibit
• (d) without prejudice to the provisions of sub-section (1) of section 11,
require any person or class of persons specified in that sub-section to
obtain prior permission of the Central Government before accepting any
foreign contribution;
• (e) require any person or class of persons, not specified in section 6, to
furnish intimation, within such time and in such manner as may be
prescribed, as to the receipt of any foreign hospitality, the source from
which and the manner in which such hospitality was received:
25. • Provided that no such prohibition or requirement shall be made unless the
Central Government is satisfied that the acceptance of foreign contribution by
such person or class of persons, as the case may be, or the acceptance of foreign
hospitality by such person, is likely to affect prejudicially —
• (i) the sovereignty and integrity of India; or
• (ii) public interest; or
• (iii) freedom or fairness of election to any Legislature; or
• (iv) friendly relations with any foreign State; or
• (v) harmony between religious, racial, social, linguistic or regional groups, castes
or communities.
26. Cancellation of Certificate
• Section 14 of the said act contains provisions where in the
central government can cancel the certificate for the reasons
mentioned below:
• (a) the holder of the certificate has made a statement in, or in
relation to, the application for the grant of registration or
renewal thereof, which is incorrect or false; or
• (b) the holder of the certificate has violated any of the terms
and conditions of the certificate or renewal thereof; or
27. Cancellation of Certificate
• (c) in the opinion of the Central Government, it is necessary in
the public interest to cancel the certificate.
• (d) the holder of certificate has violated any of the provisions
of this Act .
• (e) if the holder of the certificate has not been engaged in any
reasonable activity in its chosen field for the benefit of the
society for two consecutive years or has become defunct
28. Opportunity of being heard
(1) No order of cancellation of certificate under this section shall be
made unless the person concerned has been given a reasonable
opportunity of being heard.
(2) Any person whose certificate has been cancelled under this section
shall not be eligible for registration or grant of prior permission for a
period of three years from the date of cancellation of such certificate.
•
29. REPORTINGBY BANKSOF RECEIPTOF
FOREIGNCONTRIBUTION:
• Every bank is required to give a report to the central government
• within 30 days of any transaction
• of receiving foreign contribution by any person who wasn’t granted
any such certificate or prior permission as on the date of receiving
such remittance
• Where the foreign contribution exceeds Rs. 1 crore in a period of 30
days by any person whether registered or with prior permission or
not.
30. • 20. Audit of accounts. - Where any person who has been granted a certificate or given prior
permission, fails to furnish any intimation under this Act within the time specified therefor
or the intimation so furnished is not in accordance with law or if, after inspection of such
intimation, the Central Government has any reasonable cause to believe that any provision
of this Act has been, or is being, contravened, the Central Government may, by general or
special order, authorise such gazetted officer, holding a Group A post under the Central
Government or any other officer or authority or organisation, as it may think fit, to audit
any books of account kept or maintained by such person and thereupon every such officer
shall have the right to enter in or upon any premises at any reasonable hour, before sunset
and after sunrise, for the purpose of auditing the said books of account:
•
31. COMPOUNDINGOF OFFENCE:
• An application for compounding of offence under section 41
may be made to the secretary , ministry of home affairs , new
delhi with a fee of Rs 1000.
• -once in a block of 3 years
32. THE SCOPE OF FCRA
EXPANDED
• The new FCRA, 2010 has a much broader applicability;
it is applicable to individuals, Hindu Undivided Family
(HUF), Association and a section 25 company.
• In the old Act, the term person was not defined and
generally the Act referred to the term ‘Association’.
• Now it is very clear that FCRA applies to the above
category of persons.
33. THE SCOPE OF FCRA EXPANDED
• It is generally believed that both FCRA 2010 AND FCRA1976 cover only the Non-Profit
Organisations (NPOs) and not others.
• The new FCRA, 2010 has a much broader applicability; it is applicable to :
• 1.individuals,
• 2.Hindu Undivided Family (HUF),
• 3. Association
• 4. a section 25 company.
• In the old Act, the term ‘person’ was not defined and generally the Act referred to the term
‘Association’. However, now it is very clear that FCRA applies to the above category of
persons.
34. applicability TO COMMERCIAL OR
BUSINESS ORGANISATIONS
• Movement of foreign funds in the normal course of
commerce and business is outside the purview of
FCRA.
• Therefore, business organisations are not covered by
FCRA 2010 also.
• However, the provision of Foreign Exchange
Management Act, 1999, which is a financial
legislation, would be applicable.
35. FOREIGN
CONTRIBUTION
- includes all kind of transfers from foreign sources.
- includes any kind of transfer, delivery or donation of
currency, article or securities.
The notable change in the new act is that Foreign Contribution
does not include commercial receipts. In other words, an NGO
can receive consultancy or other commercial receipt from
foreign sources even without having FC Registrations. FC
registered NGOs should receive such receipt in their domestic
account and the commercial receipt are not required to be
reported to the FCRA department.
36. PANCHAYAT HAS BEEN
DEFINED AS LEGISLATURE
• ‘Panchayat’ has been included under the definition
of ‘Legislature’ under section 2(1)(k).
• The implication of this change is that a member of a
Panchayat cannot receive any foreign contribution.
• Secondly, NGOs who are working closely with
Panchayat will have to be careful and ensure that
their activities are not interpreted as of political
nature.
37. RELATIVE- defined.
The term ‘Relative’ has been defined for the first time giving it the
same meaning as under section 2(41) of the Companies Act, 1956.
No permission is required to obtain foreign contribution from a
relative under section 4 which is a relaxation.
However, rule 6 provides that any gift from relatives above 1,00,000/-
in one year shall be intimated to the FCRA department in Form FC-1.
Therefore, the rule overrides the Act.
• Similarly scholarship, stipend etc. received from foreign
sources are excluded under section 4. This again is a relaxation
over the old Act.
38. • Section – 6:
• A person shall be deemed to be a relative of another, if, and
only if,
• (a) they are members of a Hindu undivided family ; or
• (b) they are husband and wife ; or
• (c) the one is related to the other in the manner indicated in
Schedule IA.
40. Lineal descendants + brother and
sister together with their spouses
Sister (including
step-sister). &
Sister's husband.
Brother (including
step-brother). &
Brother's wife.
INDIVIDUAL
Son (including step-
son).&
Son's wife.
Son's son. &
Son's Son's wife.
Son's daughter. &
Son's daughter's
husband.
Daughter (including
step-daughter).&
Daughter's husband
Daughter's son &
Daughter's son's
wife.
Daughter's
daughter. &
Daughter's
daughter's husband.
41. INCOME TAX ACT
• SECTION 2(41)
• “relative”, in relation to an individual, means the husband,
wife, brother or sister or any lineal ascendant or descendant
of that individual ;
42. ORGANISATIONS OF
POLITICAL NATURE
• Organisations of political nature cannot accept foreign
contributions which was possible under the old Act with prior
permission. Elaborate Rules have been framed for notifying
any organisation as an organisation of political nature.
• Under Rule 3 the FCRA department may declare any
organisation as an organisation political nature, if :
• -It has political objectives in its memorandum.
• - It is a trade union.
• -It is a group of political nature.
43. Contd…
• -It is like Student Union, Worker Union, Youth
Union and Women wing of Political party.
• -Any organisation if any material evidence found to
be engaged in political activity.
• -Any organisation found to be engaged in political
activity such as ‘Bandh’, ‘Rasta Roko’ ‘Rail Roko’
and ‘Jail Bharo’.
44. TRANSFER OF FUNDS TO FC
REGISTERED ORGANISATIONS
• The Act prohibits transfer of funds to any other organisation
unless the recipient organisation also possesses FC
registration.
• However, there is some confusing requirement under Rule
24(2) which requires filing of Form 10 for prior permission
even for transfer to registered FC organisations. This issue has
been clarified by the FCRA department in writing.
• It has been clarified that there is no need for obtaining prior
approval for transfer of FC funds to organisations which are
having FC registration.
45. TRANSFER OF FUNDS TO
UNREGISTERED ORGANISATIONS
The old Act prohibited transfer of funds to any other
organisation unless the recipient organisation also possesses FC
registration. However, the new Act allows of FC funds to even
unregistered organisation.
Section 7 of FCRA 2010 provides that foreign contribution can
also be transferred non FC organisation with prior approval.
Rule 23(4) provides that an organisation may apply in Form
FC-10 for transfer of FC funds to unregistered organisations.
Such transfer could be made to multiple recipients through one
prior approval.
46. Contd…
There is a ceiling of total amount of transfer to unregistered
organisations – i.e 10% of the total foreign contribution
received.
Further, a recommendation from the District Magistrate have
to be obtained.
The aforesaid rule has practically defeated the purpose of this
amendment as prior permission was in any case available to
all organisations.
When a donor organisation proposes to transfer funds to
various districts, then certificate from District Magistrate
would have to be obtained separately for each district.
47. ADMINISTRATIVE EXPENSES
The new Act fixes a ceiling of 50% for administrative expenses.
The definition of administrative expenses includes various expenses such
as rent, vehicles etc. which can also be incurred for programme purposes.
The definition of Administrative Expenditure briefly is as under :
- Remuneration and other expenditure to Board Members and Trustees
- Remuneration and other expenditure to persons managing activity.
-Expenses at the office of the NGO
-Cost of accounting and administration
48. The definition of administrative expenses includes various
expenses such as rent, vehicles etc. which can also be incurred
for programme purposes.
-Expenses towards running and maintenance of
vehicle
- Cost of writing and filing reports
- Legal and professional charges
- Rent and repairs to premises
This amendment may cause hardship in interpreting the Rule
5 constituted in this regard.
49. Contd..
The Rule further provides that the following salaries
shall not be considered as administrative in nature :
-Salaries of personnel engaged in training or for
collection or analysis of field data of an association
primarily engaged in research or training (1st proviso)
- Expenses related to activities for example salaries to
doctors of hospital, salaries to teachers of school etc.
(2nd proviso)
50. APPLICATION FOR
REGISTRATION & PRIOR PERMISSION
Under section 11 of new Act, application for registration and prior permission is
required to be made.
There are no major changes under this provision and all the existing registered
organisations will continue to remain valid for the next 5 years from the enactment
of this Act.
Other relevant issues in this regard are as under :
- All new registration and prior permission applications have to be made in Form
FC-3 and FC-4 respectively.
All applications should be made electronically followed by hard copies within 30
days of the electronical submission, otherwise the application will become void. A
new application can only be made after 6 months of the cessation of the old
application, both in the case of registration and prior permission.
51. Contd…
• Under section 12 of the FCRA department has
to process all application for registration or
prior permission within 90 days.
• The FCRA department shall also provide
reasons for rejections.
• -A new prior permission application can be
made any time or simultaneously if it pertains
to a different project.
52. Contd…
In the old FCRA there was no time limit for processing an
application for registration. Under section 12 of the FCRA
2010, applications have to be processed within 90 days.
The FCRA department shall also provide reasons for
rejections.
In case of prior permission, there is no provision which
allows deemed approval as was the case in the old act.
53. POWERS FOR REJECTING
AN APPLICATION
The FCRA 2010 has provided considerable powers to the
authorities for rejecting an application for prior permission or
registration.
Under Section 12, various strict conditions have been provided
which include that the applicant should not have been
prosecuted or convicted for indulging in activities aimed at
conversion or creating communal tension.
It may be noted that the word ‘prosecuted’ has been used
which implies that even if there is a Court proceeding pending,
then also FCRA registration could be denied.
54. SUSPENSION OF
REGISTRATION CERTIFICATE
Section 13 of the new Act allows the power to suspend the registration
pending cancellation of certificate, for a period upto 180 days.
During suspension the organisation cannot receive any foreign funds
without prior approval.
However, such organisation can utilise the existing foreign funds to the
extent of 25%, that too with prior approval from FCRA department.
Before suspending any organisation, the FCRA department shall record
the reasons in writing.
One very important issue under this section is the absence of any
provision for an opportunity of being heard, before suspension which
seems to be very harsh and unfair.
55. CANCELLATION OF
REGISTRATION CERTIFICATE
Under section 14, the Central Government may cancel the
registration certificate for various reasons.
However, no certificate shall be cancelled unless reasonable
opportunity of being heard is provided.
The reasons for cancelling the certificate are :
(i) Providing false information
(ii) Violating the terms and conditions like filing of return, etc.
(iii) Violating the Act or the Rules
(iv) Acting against public interest
(v) No reasonable activity for 2 years.
56. Contd…
Once a registration certificate is cancelled, such
person shall not be eligible for registration or
prior permission for the next 3 years from the
date of cancellation.
The term “reasonable activity” has not been
defined. It may so happen that an NGO may
have activity from local Registration may be
cancelled for various reasons.
57. FOREIGN COMPANY &
FOREIGN SOURCE
The old FCRA 1976 considered Indian companies, where more than 50% of
equity is held by foreigners, as foreign source.
Unfortunately this provision has been retained in the new FCRA 2010,
though the stated intent of the Government was to exclude such
companies.
The FCRA 2010 has defined a foreign company under clause (g) of Section
2, which does not include Indian Companies. This clause is apparently
inserted to exclude Indian companies having more than 50% of Foreign
equity holding.
However section 2(j) which defines the term ‘foreign source’ includes an
Indian company under the category of foreign source if more than 50% of
its equity is held by foreigners.
58. BUSINESS / CONSULTANCY
INCOME OF AN NGO
The new Act excludes consultancy or commercial receipts from the
purview of foreign contribution. This amendment was very necessary but
it comes with a lot of potent controversies and trouble for the NGOs.
As per the new provisions, any fee or cost against business, trade or
commerce shall not be considered as foreign contribution.
In other words, such receipts can be treated as local income. However the
problem is that this provision is in contradiction with the amended section
2(15) of the Income Tax Act which prohibits trade or business related
receipts beyond Rs.25 lakh. Therefore, NGOs should be careful in treating
consultancy income and other receipts as local income even though it is
now permissible under the proposed Act.
59. PERSONS SPECIFICALLY DEBARRED
FROM RECEIVING FOREIGN CONTRIBUTION
Section 3 of FCRA 2010 specifies that the following persons cannot receive foreign
contribution:
(a) candidate for election.
(b) correspondent, columnist, cartoonist, editor, owner, printer or publisher of a
registered newspaper.
(c) Judge, Government servant or employee of any corporation.
(d) member of any legislature
(e) political party or office-bearer thereof.
(f) Organisation of a political nature.
(g) Association or company engaged in broadcast of audio or visual news.
(h) Correspondent, columnist etc. related with the company referred in clause (g)
60. Contd…
• It may be noted that the category of persons
debarred from receiving foreign funds have
been increased.
• The clause (f), (g) and (h) have been added
by the FCRA 2010.
61. Exceptions
Though the above mentioned persons cannot receive foreign
contribution, certain exceptions have been specified in section
4 which are as under:
“(a) If they receive foreign funds by way of salary, wages or
remuneration for services rendered. Or if they receive payment
in ordinary course of business transaction in India by such
foreign organisation or source.
(b) If the funds are received in the course of international trade
or commerce or in the ordinary course of business transacted
outside India.
62. (c) Payment is received as an agent of a foreign source of
organisation in relation to any transaction made by such
foreign organisation with the central or state government.
(d) If the payment is received by way of gift or
presentation as a part of any Indian delegation within the
norms of acceptance described by Central Government.
(e) From his / her relative.
(f) By remittance under normal course under FEMA 1999.
(g) By way of Scholarship, stipend etc.”
63. • This section is more or less the same except the fact that
remittance from specified person has not been restricted
to Rs.8000/- as was under FCRA 1976.
64. RENEWAL OF REGISTRATION
EVERY 5 YEARS
The FCRA 2010 provides for renewal of registration of
NGOs every 5 years.
However, the Act has provided relief to all the existing
NGOs for the first 5 years from the date of enactment.
In other words, all existing NGOs have to renew their
registration at the end of the period of 5 years from the
date of enactment of FCRA 2010.
This implies that the renewal of all the existing NGOs
will become due on 1st May 2016.
65. Contd…
Rule 12 provides the procedure for renewal application.
All NGOs have to apply in Form FC-5 six months before the due date.
Therefore, all the existing NGOs have to file their FC-5 for renewal before 1st
November 2015.
The Rule further provides that NGOs implementing multi year projects shall be
eligible to apply for renewal twelve months before the date of expiry of the
certificate of registration.
In case an NGO fails to apply for renewal within the due date, its registration shall
become invalid. However, the department may condone the delay if satisfactory
reasons for not submitting the renewal application are provided. Such delay should
not be for more than 4 months after the expiry of the original certificate of
registration.
66. POWER TO PROHIBIT SOURCES
FROM WHICH FC CAN BE ACCEPTED
• The Act provides power to the Central Government
under section 11(3)(iv)
• to notify such source(s) from which foreign
contribution shall be accepted with prior permission
only.
• It implies that the Central Govt. may notify specific
donors or countries from which foreign funds could
not be received or shall be received with prior
permission only.
67. MULTIPLE BANK ACCOUNT
Section 17 of FCRA 2010 provides that multiple bank
accounts can be opened for the purposes of utilisation
provided only one bank account is maintained for
receiving foreign contribution.
Under Rule 9 it is provided that the NGOs may open one
or more bank accounts for the purpose of utilisation.
However, in all such cases an intimation in plain paper
should be sent to the FCRA department within 15 days of
the opening of such account.
68. DISPOSAL OF FIXED ASSETS
ON DISSOLUTION
• Section 22 of the FCRA 2010 provides that, in
case of dissolution, the Central Govt. shall
have the power to determine the process of
disposal of FC assets.
• The Central Govt. may specify the manner
and procedure in which such asset shall be
disposed off.
69. SPECULATIVE ACTIVITIES
Rule 4 specifies the circumstances under which an investment
could be treated as speculative in nature.
Rule 4(1)(a) prohibits investment in shares & stocks even
through mutual fund.
This provision is in conflict with section 11(5) of the Income
Tax Act which provides investment in certain stock linked
mutual funds.
Rule 4(1)(b) prohibits investment in high return schemes or in
land if it is not directly linked to the declared aims and
objectives of organisation.
70. DISCLOSURE OF INFORMATION
IF RECEIPTS EXCEED
ONE CRORE
Rule 12 provides that if the contributions
received during the year exceed one
crore, then the organisation has to keep in
the public domain all data
The rule also states that the Central
Government will also upload such
summary data through its website.
71. Contd…
• The manner of disclosure or meaning of
‘public domain’ has not been explained.
• It seems that all such organisations are
required to have their own website where
such data should be uploaded.
72. CUSTODY OF FUNDS AND ASSETS
IN THE EVENT OF CANCELLATION
Rule 14 provides the procedure regarding the custody of
foreign funds and assets in the event of cancellation of
registration.
In case of available bank balances, the respective banking
authority will become the custodian till the Central
Government issues further directions.
If funds have been transferred to another NGO after
cancellation, then the funds in the bank account of such
NGO will also go to the custody of the banking authority.
73. Contd…
• All other assets of the organisation whose certificate
has been cancelled or has become defunct shall go to
the interim custody of the District Magistrate or any
other authority which the Central Government may
direct.
• This provision seems unfair, because the direction
for repossession of asset should only be issued
when all appellate remedies are exhausted.
74. REPORTING BY BANKS
• Rule 15 provides that the bank should report to the
FCRA department within 30 days under two
circumstances :
• (i) if any foreign contribution is received without
registration or prior permission,
• (ii) if foreign contribution is received in excess of `
one crore during a period of 30 days, this rule will
apply to all FC funds received through valid
registration or prior permission.
75. FILING OF RETURN &
METHOD OF ACCOUNTING
Rule 16 provides that the annual return accompanied by
Income and Expenditure statement, Receipt and Payment
Account and Balance Sheet shall be submitted by 31st of
December. The law regarding filing of returns remains, more or
less unchanged. However, the notable changes are as under :
-The return shall be filed in Form FC-6 and not FC-3
-For the first time, FC rules are asking for submission of income
and expenditure account
-A copy of bank statement certified by the bank has to be
submitted
-A nil return is required to be filed if there is no activity
76. Contd…
The FCRA 2010 and the Rules thereof do not specify any method of
accounting. It seems due to the inclusion of Income and expenditure
account that the utilisation will be permissible on accrual basis also
Section 19 of the FCRA 2010 just provides that accounts with regard to FC
receipt and utilisation should be maintained. In the past, it was assumed
that FCRA required cash basis of reporting (if not accounting).
However, with the new requirement of filing Income and Expenditure
account raises the question whether accrual basis of accounting is also
permissible.
On a plain reading of section 19 of FCRA 2010, Rule 16 and Form FC-6, it
seems that the requirement is to report FC funds received and utilised
during the year
77. Contd…
In other words, the receipt of funds shall be on cash basis only but
there is no direction regarding utilisation on payment basis only.
FCRA 2010 does not seem to be prescribing any fixed method of
accounting. Any method of accounting may be followed by the
organisation but the receipt of FC funds should be reported on
cash basis only.
It can be inferred that due to the inclusion of Income and
Expenditure account, the utilisation will be permissible on accrual
basis also if the organisation consistently follows accrual basis of
accounting. However, the proposed Direct Tax Code (DTC)
prescribes cash basis of computation only.
78. ADDITIONAL REQUIREMENT
OF FILING FORM FC-7
All NGOs are required to file Form FC7 along with a certificate
for Chartered Accountant, if they receive contribution in kind.
In the old act, there was no such requirement for filing a
separate return for foreign contribution received in kind.
It may be noted that old Form FC-3 and the new Form FC-6
both have a column for contribution received in kind.
Therefore, it was not necessary to have an additional
requirement of filing Form FC-7. However, as it stands, FC-7
has to filed in case of receipt of contribution in kind.
79. PRESERVATION OF
ACCOUNTING RECORDS FOR 6 YEARS
Rule 17(7) provides that accounting statements
shall be preserved for 6 years.
This is a very welcome change.
Earlier it was seen that the NGOs were asked to
provide books and records for past 10-15 years
which was practically not possible. This rule will
provide a lot of relief to the existing NGOs.
80. COMPOUNDING OF OFFENCE
• Section 41 read with Rule 21 provides that the Ministry
of Home Affairs may compound any offence punishable
under the FCR Act.
• When an offence is compounded, then such organisation
is not prosecuted.
• This is also a positive change which will help in avoiding
needless legal cases.