FCRA

FOREIGN CONTRIBUTION REGULATION ACT (FCRA) COMPLIANCE

We assist in complying with the FCRA act for filling of forms FC-1, FC-2, FC-3, FC- 4(annual return), FC – 5 and FC – 6. We take utmost care in FCRA compliances since any violation has drastic and stringent consequences.

FCRA, 2010 has been enacted by the Parliament 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 national interest and for matters connected therewith or incidental thereto.

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Applicability of FCRA

As per Section 1(2) of FCRA, 2010, the provisions of the act shall apply to:

  • Whole of India
  • Citizens of India outside India; and
  • Associate Branches or subsidiaries, outside India, of companies or bodies corporate, registered or incorporated in India
Meaning of Foreign Contribution

As defined in Section 2(1)(h) of FCRA, 2010, "foreign contribution" means the donation, delivery or transfer made by any foreign source ─

  • of any article, not being an article given to a person* as a gift for his personal use, if the market value, in India, of such article, on the date of such gift is not more than such sum as may be specified from time to time by the Central Government by the rules made by it in this behalf.
  • of any currency, whether Indian or foreign;
  • of any security as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 and includes any foreign security as defined in clause (o) of Section 2 of the Foreign Exchange Management Act, 1999.

Priya B & Co., Chartered Accountants offer robust solutions for filing of GST Returns which can be monthly as well as annual returns.A GST Return is a document mentioning details of income a taxpayer is required to file with the concerned tax authority on the basis of which the tax liability will be determined. A registered entity needs to file GST returns entailing Purchases, Sales, Output GST (on sales) and Input tax credit (GST paid on purchases). The various kinds of GST returns filed by taxpayers are GSTR - 1, GSTR - 2, GSTR - 2A, etc.

Who is a person in FCRA ?

In terms of FCRA, 2010 "person" includes ‒

  • an individual;
  • a Hindu undivided family;
  • an association;
  • a company registered under section 25 of the Companies Act, 1956 (now Section 8 of Companies Act, 2013).
Who can receive foreign contribution ?

Any “Person” can receive foreign contribution subject to following conditions:-

  • It must have a definite cultural, economic, educational, religious or social programme.
  • It must obtain the FCRA registration / prior permission from the Central Government
  • It must not be prohibited under Section 3 of FCRA, 2010.

Persons not eligible to receive foreign contribution As per Section 3(1) of FCRA, 2010, the following are prohibited to receive foreign contribution:-

  • Candidate for election;
  • Correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper;
  • Judge, Government servant or employee of any corporation or any other body controlled or owned by the Government;
  • Member of any legislature;
  • Political party or office bearer thereof;
  • Organization of a political nature as may be specified under sub-section (1) of Section 5 by the Central Government.
  • Association or company engaged in the production or broadcast of audio news or audio visual news or current affairs programmes through any electronic mode, or any other electronic form as defined in clause (r) of sub-section (1) of Section 2 of the Information Technology Act, 2000 or any other mode of mass communication;
  • correspondent or columnist, cartoonist, editor, owner of the association or company referred to in point (8).
  • Individuals or associations who have been prohibited from receiving foreign contribution.