Dear friends
what are the amendments in FCRA Act,2010. Can a trust accept foreign contribution as second receipient
Sowmya.S.Balan (Paid Assistant) (749 Points)
16 May 2011Dear friends
what are the amendments in FCRA Act,2010. Can a trust accept foreign contribution as second receipient
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7014 Points)
Replied 16 May 2011
what do you mean with second recipient.
As per my understanding the following should be applicable in your case:-
Procedure for transferring foreign contribution to other registered or unregistered persons. –
(1) Any person intending to transfer the foreign contribution may make an application to the Central Government in Form FC-10….
(4) In case the foreign contribution is proposed to be transferred to a person who has not been granted a certificate of registration or prior permission by the Central Government, the person concerned may apply for permission to the Central Government to transfer a part of the foreign contribution, not exceeding ten per cent, of the total value of the foreign contribution received. The application shall be countersigned by the District Magistrate having jurisdiction in the place where the transferred funds are sought to be utilised. The District Magistrate concerned shall take an appropriate decision in the matter within sixty days of the receipt of such request from the person. The donor shall not transfer any foreign contribution until the Central Government has approved the transfer.
Anuj
0-9810106211
L. MuthuKumaran
(Income Tax Consultant)
(53 Points)
Replied 08 June 2011
Dear All,
One of my client is a trust and received machinery as foreign contribution. Recently he sold the m/.c for Rs. 1.20 lacs. where book value is Rs. 80,000. Please guide me how treat this in books of a/c , Income tax.
CAclubindia
