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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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. Every bank shall send a rcra 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.
Contributions made by a citizen of India living in another country, from his personal savings, through the normal banking channels, is not treated as foreign contribution. Essential Requirements A Bank Account 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.
political donations and the ghost of fcra
This article is closed for comments. Modalities for submission of application for obtaining registration or prior permission to receive foreign contribution have been given in detail in the Rules and Forms for filing fccra applications.
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. Recently, another NGO Compassion International had to shut down India operations after the government refused permission to accept foreign funding.
This amendment was introduced with retrospective effect — a fcta attempt to legitimise the FCRA violations of the two parties. Despite the censure, the NDA regime has shown no signs of relenting. 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.
FCRA – Wikipedia
Charter for the Chartered Accountants Since the FCRA Act, is national security legislation; NGOs are required to exercise extreme care and caution in dealing with foreign contribution from the time of its receipt to its final utilization. Every bank shall report to such authority, as may be prescribed, the amount of foreign remittance received, sources and manner and other particulars. Two years ago, the Supreme Court struck down the appeals filed by the two political parties against the Delhi high court verdict.
It merely seeks to correct an anomaly,” said officials. The charge was led by the U. 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 on which he is duly nominated as a candidate for election.
Retrieved from ” https: An association having a definite cultural, economic, educational, religious or social programme can receive foreign contribution after it obtains the prior permission of the Central Government, or gets itself registered with the Central Government.
However, administrative expenses exceeding fifty per cent of the contribution to be defrayed with the prior approval of the Central Government.
The accounting statements referred to above shall be preserved by the person for a period of six years. December 27, B Documents Remember to enclose copies of the following documents with your application — Certifed copy of registration certificate fcraa Trust fvra, as the case may be; Details of activities during the last three 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 ; If functioning as editor, owner, printer or publisher of a publication registered under the Press and Registration of Books Fcrw,a certificate from the Press Registrar that the publication is not a newspaper in terms of section 1 1 of the said Act.
Foreign Contribution (Regulation) Act, 2010
Dipak Bhatacharya, advocate and senior partner in Tottenham India Law Associates, said, “The retrospective amendments to FCRA seem to have been brought clearly to allow political parties to evade any sentencing in this case. From Wikipedia, the free encyclopedia.
That means these NGOs can no longer receive funds from foreign donors. An incomplete application will be summarily rejected.
Please Email the Editor. All grants and donations fcda in violation of FCRA will be condoned. The two subsidiaries were Sterlite Industries India and Sesa Goa, companies registered in India whose controlling shareholder was London-listed Vedanta. Interestingly, the FCRA law deemed Indian companies as “foreign” if overseas residents held more than 50 per cent of the shareholding in such firms.
Many of the larger corporates of India have more than 50 per cent foreign shareholding fxra they were compelled to work with FC registration organisations only till now “.
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The intimation is to be given in Form FC — 5. 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. The fee for obtaining registration or prior permission would be Rs. 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 come into force.
A person implementing an ongoing multi-year project shall apply for renewal twelve months before the date of expiry of the certificate of registration. To tide itself over this problem, the government was forced to do something that it promised not to do: The annual return in the prescribed Form shall reflect the foreign contribution received in the exclusive bank account and include the details in respect of the funds transferred to other bank accounts for utilisation.
An association granted prior permission or registration under the Act must maintain a separate set of accounts and records exclusively for the foreign contribution received and utilised in the prescribed manner. Poll call in budget mix for farms Business. An association permitted to accept foreign contribution is required to submit an annual return, duly certifed by a Chartered Accountant, giving details of the receipt and purpose-wise utilization of the foreign contribution.
With liberalisation which allowed foreign firms to own up to per cent in Indian companies, the FCRA had become a bit of a relic and its narrow definition of what constituted “foreign” even more so. 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.
She is the secretary of Citizens for Justice and Peace CJPan organisation formed for fighting for justice for the victims of communal violence in the state of Gujarat in The registration is granted only to such association, which has proven track record of functioning in the chosen field of work during last three years, and after registration, such organization is free to receive foreign contribution from any foreign source for stated objectives. It shall be accompanied by a fee of Rs.
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 from the date of the grant of registration.
Availability of Forms Please use the correct and current form. Time Taken to Dispose Application An application for registration is normally disposed within six months.
Any person whose request has ceased shall be able to prefer a fresh on-line application only after six months from the date of cessation of the previous application.