Foreign Contribution

 

·         In order to receive foreign contribution, Clearance from Ministry of Home Affairs is required –

1.          On Permanent basis; OR

2.          On Case to case basis

 

·         An association with a definite cultural, economic, educational, religious or social program shall be eligible to accept foreign contribution.

 

·         Separate Bank Account is to be opened exclusively for receiving foreign funds. Need not to deposit funds in such account except minimum contribution required for opening up the bank account.

 

·         PERMANENT REGISTRATION - FCRA registration - Registration under section 6(1)(a)

-                      Apply in FORM 8.

-                      Documents to be submitted –

                                                        I.            Certified copy of registration certificate or Trust deed, as the case may be;

                                                      II.            Details of activities during the last three years;

                                                    III.            Copies of audited statement of accounts for the past three years (Asset and Liabilities, Receipt and Payment, Income and Expenditure);

                                                    IV.            Certificate from concerned District Collector, Deptt. Of State Govt, Ministry / Deptt. of GOI.

                                                      V.            List of states or district of focus of work

                                                    VI.            Certified copies of MOA, AOA, Certificate of Registration issued by ROC, Section 25 license, etc

-                      In this case where permanent registration is obtained, intimation is to be sent to Central Govt, after receipt of foreign contribution.

-                      Address -

The Secretary to the Government of India,

Ministry of Home Affairs, Jaisalmer House, 26, Mansingh Road, New Delhi – 110011

 

·         CASE TO CASE BASIS PERMISSION FROM MINISTRY OF HOME AFFAIRS - Prior Approval - Prior permission under section 6 (1A)

-                      Apply in Form FC-1A (For NGO’s, Trusts) or Form FC-1 (For Political Parties) with Ministry of Home Affairs. Action (Acceptance / Rejection) shall be taken by Central Govt. within 90 days of application.

-                      Documents to be submitted –

                                                        I.            Commitment letter from foreign donor specifying the amount of foreign contribution (only with prior permission application);

                                                      II.            Copy of project for which foreign contribution was solicited/is being offered (only with prior permission application);

 

·         FCRA permission is not required in following cases

-                      Salary, Wages or other remuneration either to individual or payment for business purposes

-                      Payment for international trade or for business transacted by him outside India

-                      By way of Gift or presentation received as member of any Indian delegation

-                      Gift not exceeding Rs. 8000 per annum.

 

·         Annual Reporting to Central Govt.

-                      Yearly account of foreign contribution received and utilized shall be filed with Central Govt. in Form 3 (By 31st July), till such time FCRA funds are fully utilized.

-                      Certificate is to be given by CA in practice along with this form.

·         An Illustrative list of programs permitted to be carried out by associations-

1. Religious

-             Celebrations of religious functions/festivals etc.

-             Construction/repair/maintenance of places of worship, religious schools.

-             Education of priests and preachers; (dissemination of the message of good will etc. from

 their holy books).

-             Publication and distribution of religious books/ literature.

-             Maintenance of priests / preachers / other religious functionaries.

-             Any other activities related to the above.

2. Educational

-             Construction and maintenance of school/college.

-             Construction and running of hostel for poor students.

-             Grant of stipend/Scholarship/assistance in cash and kind to poor/deserving children.

-             Purchase and supply of educational material-books, notebooks etc.

-             Conducting adult literacy programs.

-             Conducting Research.

-             Education/Schools for the mentally challenged.

-             Non-formal education projects/coaching classes.

-             Any other activities related to the above.

3. Economic

-             Following activities (Not being commercial or profit making activities)

-             Micro-finance projects, including setting up banking co-operative and self-help groups.

-             Self-sustaining income generation projects/Schemes.

-             Agricultural activity.

-             Rural Development.

-             Animal husbandry projects.

-             Setting up and running handicraft centre/cottage and khadi industry/social forestry

          projects.

-             Vocational training, tailoring, motor repairs, computers etc.

-             Any other activities related to the above, not being commercial activities.

4. Social

-             Construction/Running of Hospital/dispensary/clinic.

-             Construction of community halls etc.

-             Construction and Management of old age home.

-             Welfare of the aged widows.

-             Construction and Management of Orphanage.

-             Welfare of the orphans.

-             Construction and Management of dharamshala /shelter.

-             Holding of free medical/health/family welfare/immunisation camps.

-             Supply of free medicine, and medical aids, including hearing aids, visual aids, family

          planning aids etc.

-             Provision of aids such as Tricycles, callipers etc. to the handicapped.

-             Treatment/Rehabilitation of drug addicts.

-             Welfare/Empowerment of women.

-             Welfare of children.

-             Provision of free clothing/food/to the poor. Needy and destitute.

-             Relief/Rehabilitation of victims of natural calamities.

-             Help to the victims of riots/other disturbances.

-             Digging of bore wells.

-             Sanitation including community toilets etc.

-             Awareness camp/Seminar/workshop/meeting/conference.

-             Providing free legal aid/Running legal aid centre.

-             Holding sports meet.

-             Awareness about Acquired Immune Deficiency Syndrome (AIDS)/Treatment and

          rehabilitation of persons affected by AIDS.

-             Welfare of the physically and mentally challenged.

-             Welfare of the Schedules Castes.

-             Welfare of the Scheduled Tribes.

-             Welfare of the Backward Classes.

-             Environmental programs.

-             Survey for Socio-economic and other welfare programs.

-             Preservation & maintenance of Wild Life.

-             Preservation of Natural Resources.

-             Awareness against social evils.

-             Rehabilitation of victims of heinous crimes.

-             Rehabilitation of beggars, bootleggers, child labour etc.

-             Creating awareness of Government schemes & Law to general public.

-             Any other activities related to the above.

5. Cultural

-             Celebration of national events (Independence/Republic day/festivals.

-             Theatre/Films etc.

-             Maintenance of places of historical and cultural importance.

-             Preservation of ancient/tribal art forms.

-             Preservation & promotion of Cultural Heritage & Literature of India.

-             Cultural shows.

-             Any` other activities related to the above.




About the Author

CA in Practice

Hello Friends, I am practicing as an independent CA in Rajasthan. CA Practice to me, means the whole world where I can travel as much as possible enjoy the beauty of my profession. Before that, I worked with Infosys Technologies Ltd.,the second largest Software Exporter in India,as a Functional Consultant in SAP ER ... Read more


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