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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Receipt of Scholarships etc A citizen of India receiving any scholarship, stipend or any payment of a like nature from any foreign source is required to give, within thirty days of such a receipt, an intimation to the Central Government as to the amount of the scholarship, stipend or other payment received; the foreign source from which and the purpose for which, such scholarship, stipend or other payment has been, or is being received. Please fill the relevant application form with due care.
This was the Cold War era, when both the Soviets and the Americans meddled in the internal affairs of post-colonial nations to secure their strategic interests. A new provision has been made for submission application fee. Recently, another NGO Compassion International had to shut down India operations after the government refused permission to accept foreign funding. 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.
It merely seeks to correct an anomaly,” said officials. It was never heard of again. Please familiarise yourself with the provisions of the Foreign Contribution Regulation Act, and the Foreign Contribution Regulation Rules, before making an application. Therein lies the curious tale of why the law had to be amended not once but twice. Registration is granted only after thorough security vetting of the activities and antecedents of the organization and office bearers thereof.
The forms can be obtained, free of cost, from the above-mentioned address.
Nor did it do so against the Congress, which, as the leading Opposition party, did not think it appropriate to protest this flagrant flouting of a judicial directive. Tax Incentives For Non-Residents. Legal authorities say this is technically correct as the law was in force in those years. In the cash book and ledger account on double entry basis, where the FC relates to currency received and utilised. In case the certificate of registration is suspended under the relevant provisions the Act, up to twenty-five per cent of the unutilised amount may be spent, with the prior approval of the Central Government, for the declared aims and objects for which the foreign contribution was received.
The accounting statements referred to above shall be preserved by the person for a period of six years. 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.
Every person who has been granted registration or prior permission shall maintain a separate set of accounts and records, exclusively, for the foreign contribution received and utilised.
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.
political donations and the ghost of fcra
If the validity of the certificate of registration of a person has ceased in accordance with the provisions fcea these rules, a fresh request for the grant of a certificate of registration may be made by the person to the Central Government as per the provisions of the Rules.
As a result, any donation received from such a company was also treated as a foreign contribution. 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. 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.
That necessitated the first amendment, which was achieved by tweaking the Finance Bill tcra The amount of foreign contribution lying unutilised in the exclusive foreign contribution bank account of a person whose certificate of registration has been cancelled shall vest with the banking authority concerned till the Central Government issues further directions in the matter.
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.
Gcra intimation is to be given in Form FC — 5. The remaining seventy-five per cent of the unutilised foreign contribution shall be utilised only after revocation of suspension of the certificate of registration. The ostensible justification given for the law was to curb foreign interference in domestic politics.
This article may need to be rewritten entirely to comply with Wikipedia’s quality standards. 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 19766 in excess of one fcrz 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.
Any person intending to transfer the foreign contribution may make an application to the Central Government in the prescribed Form.
Swing time in stocks Business. An ism is coming to an end. Ultimately courts can strike down such amendments.
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December 27, 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, shall be punished with imprisonment for a term, which may extend to five years, or with fne or with both. Expenditure constituting ‘Administrative expenses’ has been clearly defined.
While the provisions of the repealed FCRA, have generally been retained, the FCRA, is an improvement over the repealed Act as more stringent provisions have been made in order to prevent misutilisation of the foreign contribution received by the associations.
This amendment has also opened the doors for all political parties to accept funding from foreign companies, so long as it is channelled through an Indian subsidiary. It is advisable to obtain the passport details of the concerned citizen of India before accepting such contributions. Officials said other firms, which were Indian subsidiaries of global giants, had also made donations to political parties and these would have attracted the test of being illegal, if the amendment had not been brought.
It is to be accompanied with the balance sheet and statement of receipt and payment, duly certifed by a Chartered Accountant, also in duplicate. 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.
Do not deposit any local funds, other than the essential initial deposit specified by the bank for opening an account, in this account.
Time to repeal the FCRA
All grants and donations given in violation of FCRA will be condoned. One may recall that earlier this year, 11, NGOs lost their FCRA licences without the government having to either examine their records or suspend their registrations individually — their licences simply expired as the deadline for renewal passed.
However, the Act was to come into force on such date vcra the Central Government may, by notification in the Official Gazette appoint. It may be pertinent to point out here that it was the Congress, under the stewardship of Manmohan Singh, that replaced the original FCRA,with a fcrx draconian version in