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    Recent Changes To FCRA

    The Foreign Contribution (Regulation) Act, 2010 (for brevity ‘FC(R)A’), which has replaced the erstwhile Foreign Contribution (Regulation) Act, 1976 w.e.f 1st May, 2011 ,has been introduced with an objective to regulate the acceptance and utilization of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit the acceptance and utilization of foreign contribution or foreign hospitality for activities detrimental to the national interest. FC(R)A is administered by Ministry of Home Affairs (for brevity ‘MHA’) under Government of India (for brevity ‘GoI’).

     

    The author earlier had drafted detailed article on FCRA and request the reader to refer the page no. 12 to

     

    15 of WIKI for February, 2016 and it is accessible at

    http://www.sbsandco.com/2016/06/15/february-2016-volume-19/

     

    In recent past many changes had been made in FC(R)A for close scrutiny of receipt and utilization and Foreign Contributions or Foreign Hospitality. Hence, in light of the tough regulations, it is very important for individuals, associations or companies who are in receipt of foreign contribution to be updated with the changes made to FC(R)A, more specifically areas pertaining to the registrations and filing of returns. Here is the glimpse of the few significant changes which need to be complied with by the individuals, associations or companies who are in the receipt of the Foreign Contribution.

     

    Registration & Related Matters:

     

    Every person having a definite cultural, economic, educational, religious or social programme shall not accept foreign contribution unless such person is registered with central government or granted prior permission for the receipt of the foreign contribution.

     

    Section 11 to Section 16 of FC(R)A read with Rules made there under deals with registration and related matters under the Act.

     

    Procedure for obtaining registration:

     

    Person intending to obtain registration shall:

     

    uMakeanonline application vide Form FC-3 with the requisite information and documents; uTheapplicant shall pay a fee of Rs 2,000/-

     

    Certificate of Registration:

     

    The certificate of Registration will be granted within 90 days from the date of the receipt of the application with a validity of 5 years from the date of its issue, which need to renewed upon the expiry of the validity period.

    Procedure for Renewal of CoI:

     

    Every person who need to renew the CoI have to make an online application vide Form-FC-3 before six months of the date of expiry with the application fee of Rs. 500/-.

     

    The renewed certificate of registration will be granted within 90 days from the date of receipt of application, if not the reasons for the same would be communicated to the applicant.

     

    Amendment: As per the Public Notice circulated by the MHA vide file no. II/21022/36(0207)/2015-FCRA-

     

    • dated 12th May, 2017 the registrations for which the Renewal is sought cannot be granted unless the pending Annual Returns from FY 2010-11 to FY 2014-15 are submitted by the defaulting organizations.

     

    Amendment: An opportunity have been given to the defaulting organizations by the MHA vide public notice dated 12th May, 2017 to submit the pending annual returns from FY 2010-11 to FY 2014-15 within period of 30 days from 15th May, 2017 to 15th June, 2017 and no compounding fee will be imposed on the returns submitted during the said period.

     

    Intimation of the Quarterly Receipts (w.e.f 03.03.2016):

     

    Every person receiving the Foreign Contribution shall place the details of the Foreign Contribution on its official website or on the website specified by CG, within 15 days of the last day of the quarter in which it is received, clearly indicating the details of the donors, amount received and date of receipt. Associations not having own official website can file the prescribed information of the receipts on the MHA’s Website.

     

    Filing of Returns:

     

    Annual Returns under FCRA:

     

    Every person registered under Section 12 of the Act, shall file an annual return in Form-FC-4 electronically at www.fcraonline.nic.in with the requisite documents specifying the amount, source of foreign contribution received and manner, purposes for which it has been utilized within 9 months i.e.,

     

    31st December from the closure of the financial year.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

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    Recent Changes under FCRA

     

     

     

    SBS Wiki                                                                                                                                                      www.sbsandco.com/wiki

     

    Levy of Compounding Fee for Late Filing or Non-Filing of Annual Returns under FCRA (w.e.f 16.06.2016):

     

    S.NO

    NON-FURNISHING OF RETURNS

    AMOUNT OF PENALTY

    OFFICER COMPETENT FOR

    COMPOUNDING

     

     

     

     

     

     

     

     

     

     

     

    1

    Upto 3 Months from due date

    2% of FC received during Financial

     

     

     

     

     

    Year

     

     

     

     

     

    Or

     

     

     

     

     

    Rs. 10,000/-

     

     

     

     

     

    (whichever is lower)

     

     

     

     

     

     

     

     

     

    2

    From 3 - 6 Months from due

    3% of FC received during Financial

     

     

     

     

    date

    Year

     

     

     

     

     

    Or

     

     

     

     

     

    Rs. 50,000/-

     

     

     

     

     

    (whichever is lower)

     

     

     

     

     

     

     

     

     

    3

    From 6 Months – 1 Year from

    4% of FC received during Financial

    The  Director

    or

    Deputy

     

    due date

    Year

    Secretary in charge of the

     

     

    Or

     

     

    FC(R)A  Wing

    of

    Foreign

     

     

    Rs. 2,00,000/-

     

     

    Division in MHA

     

     

     

    (whichever is lower)

     

     

     

     

     

     

     

     

     

     

     

     

    4

    From 1 - 2 Years from due date

    5% of FC received during Financial

     

     

     

     

     

    Year

     

     

     

     

     

    Or

     

     

     

     

     

    Rs. 5,00,000/-

     

     

     

     

     

    (whichever is lower)

     

     

     

     

     

     

     

     

     

    5

    From 2 – 3 Years from due date

    10% of FC received during

     

     

     

     

     

    Financial Year

     

     

     

     

     

    Or

     

     

     

     

     

    Rs. 10,00,000/-

     

     

     

     

     

    (whichever is lower)

     

     

     

     

     

     

     

     

     

     

    Annual returns under Lokpal and Lokayuktas Act, 2013:

     

    Any person who is or has been a director, manager, secretary or other officer of every other society or association of persons or trust (whether registered under any law for the time being in force or not) in receipt of any donation from any Foreign Source under FC(R)A in excess of Rs. 10 lakh rupees in a year are required to furnish annual return of assets and liabilities till such time the entire amount of donation aforesaid received by such society or association of persons or trust stands fully utilized.

     

    Due date of filing:

     

    On or before 31st July of every year.

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