Monday, July 3, 2017

VARIOUS TYPES OF PERSONS RECEIVING FOREIGN FUNDS

Under FCRA there are various categories of recipients of foreign funds and FCRA has different stipulation for each of them. The following sub-heads discuss the various kinds of recipient and the stipulation laid down for each of them:
NGOs or Charitable Organisation
All NGOs or Charitable Organisations having a definite cultural, economic, religious or social programme are eligible for registration under FCRA. Once a FCRA registration is obtained, such organisation can receive foreign funds with obtaining any further approval subject to other formalities of FCRA.
Person specified in Section 3
Section 3 of FCRA specifies that the following persons cannot receive foreign contribution:
a) candidate for election;
b) correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper;
c) Judge, Government servant or employee of any corporation or any other body controlled or owned by the Government;
d) member of any Legislature;
e) political party or office-bearer thereof;
f) organisation of a political nature as may be specified under sub-section (1)
of section 5 by the Central Government;
g) 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;
h) correspondent or columnist, cartoonist, editor, owner of the association or company referred to in clause (g).
The above mentioned person cannot receive foreign contribution subject to certain exceptions specified in section 4 which are as under:
a) If they receive foreign funds by way of salary, wages or remuneration for services rendered.
b) If they receive payment in ordinary course of business transaction in India by such foreign organisation or source.
c) If the funds are received in the course of international trade or commerce or in the ordinary course of business transacted outside India.
d) Payment is received as an agent of a foreign source or organisation in relation to any transaction made by such foreign organisation with the governance.
e) If the payment is received by way of gift or presentation as a part of any Indian delegation within the norms of acceptance described by Central Government.
f) Payment is received from relative staying abroad.
g) Payment is received through official channel, post office or any authorized dealer in the ordinary course of business”.
h) by way of any scholarship, stipend or any payment of like nature:

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