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Receipt format pdf for corporations

hello students welcome to all of you shika 360 today we have to discuss the chapter number four of Forex that is foreign contribution regulation act 2010 very very important that is FC clear in the examination sometimes they will ask directly what is the full form of FC foreign contributions regulation act 2010 so what is the purpose of FC FC 2010 has been ened by the parliament to consolidate the law to regulate the acceptance and utilization of foreign contribution or foreign Hospitality by the certain individual or associations or companies and to proit acceptance and utilization of foreign contribution or foreign Hospitality for any activities de detrimental to the National interest and for the matters connected there within or incidental there too clear that is how the foreign currency basically comes in the country clear remittances inward okay that is ened by the parliament to consolidate the law to regulate the acceptance and the utilization of foreign C currency whether that acceptance will be beneficial for the organiz or for the country or the not that will be beneficial for the national interest or not all these things they have to be take care so the flow of foreign contribution to India is regulated under the foreign contribution regulation 2010 foreign contribution regulation rules 2011 and other notification issued there under from time to time FC 1976 has been repealed after FC 20 0 becomes an act clear earlier basically FC 1976 now that it will be become act under n 2010 so the foreign contribution regulation act 2010 and the foreign contribution regulation rules 2011 are effective from 1st of May 2011 very very important when these rules and regulations basically are effective that is basically effective from 1st of May 2011 to be here so applic of FC 2010 as per section one subsection two of FC 2010 the provision of that shall apply to First whole of India citizen of India outside India third one that is associate branches or subsidiaries clear associate branches or subsidiaries outside India of companies or bodies corporate registered or Incorporated in India clear so where it will be applicable whole of India citizen of India that are outside India or associate branches or subsidaries outside India of companies or bodies corporate registered or Incorporated in India Concepts under FC 2010 foreign contribution as defined in section two subsection 1 h of FC 2010 foreign contribution basically means the donation delivery or transfer made by any foreign Source clear foreign contribution basically it means the donation delivery of or transfer made by any foreign Source basically regarding what of any article not being an article given to a person clear of any article not being an article given to a person as a gift for his personal use if the market value of that gift in India of such article on the date of such gift is not more than such a sum as may be specified by from time to by the central government by rules made by it in this behalf and what is the sum the sum has been specified as rupes 25,000 currently here okay basically that market value clear the gift of that value it is not more than rupees 25,000 clear so in that case foreign contribution that is basically means the donation delivery or the transfer of any other currency whether it is to be Indian or foreign of any security as defined in Clause h of section two of the secur contract regulation act 1956 and includes any foreign security as defined in Clause o of section two of the Foreign Exchange Management act 1999 explanation on that is a donation delivery or transfer of any article clear a donation delivery or transfer of any article currency or foreign security refer to in this Clause clear a donation delivery or transfer or any article currency or foreign security referred to in this Clause by any person who has received it from any foreign Source either directly clear from any foreign Source either directly or through one or more person shall also be deemed to be the foreign contribution with the mean of this Clause clear shall also be deemed to be the foreign contribution with the means of this Clause explanation to that is the interest acced on the foreign contribution clear the interest acced on the foreign contribution deposited in any Bank refer to in subsection one of section 17 or any other income derived from the foreign contribution or interest thereof shall also be deemed to be the foreign contribution within the meaning of this Clause clear that is the interest acced on the foreign contribution clear whatever the amount they will received the interest acced on there also okay first one that is a donation deliver dely or transfer of any article currency or foreign secy refer to under this Clause by any person who has received it from any foreign Source either directly or through one or more persons third one that is any amount received clear any amount received by any person clear any amount received by any person from any foreign Source in India clear any amount received by any person from any foreign Source in India by the way of fees including the fees charged by the educational institutions in India from the foreign student or towards the cost in Le of goods or services clear or towards the cost in Le of goods or services rended by such person in the ordinary course of his business clear or by the way of fees that is including the fees charged by the educational institution India from the foreign student or towards the cost in Vie of goods or services rended that is provided by such person in the ordinary course of his business trade TR or Commerce whether within India or outside India or any other contribution received from an agent or from a foreign Source clear or any other contribution basically received from an agent or a foreign Source towards such fees or cost shall be excluded clear that shall be excluded from the definition of foreign contribution within the meaning of this Clause clear that shall be excluded from the definition of foreign contribution within the meaning of this Clause further that is in the terms of fcn 20 person includes what it includes an individual a Hindu undivided family that is Huf and Association a company registered under section 25 of the companies act 1956 now that is Section 8 of the companies act 2013 clear earlier it is section 25 of the companies act 1956 now it will be the Section 8 of the companies act 2013 very very important for the examination point of view so as per the FC 2010 basically which is the categorization of the person either it is to be the individual or HF or an association or a company registered under section 25 of the companies act 1956 or Section 8 of the companies's ACT 2013 to be here so what is the eligibility to receive the foreign contribution any individual HF Association or a company registered under section 25 of the companies act 1956 now Section 8 of the companies act 2813 can receive foreign contribution subject to the following condition it must have a definite cultural economic educational religious or social program it must obtain the FC registration or prior permission from the central government it must not be prited under section three of the FC 2010 clear that is it must have a definite culture economic educational religious or social program it must obtain the FC registration or prior permission from the central government or it must not be proed under section three of the FC 2010 so entities not eligible to receive the foreign contribution so as defined in section three of FC 2010 the following are proed to receive the foreign contribution very very important for the examination point of view these all will form the question in the form of the case study clear first one who will be considered as the person who are eligible who are not eligible that is a candidate for election it is not eligible correspondent columnist cartoonist editor honer printer or publisher of a registered newspaper judge got government servant or employee of any Corporation clear 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 beer thereof organization of a political nature as may be specified clear organization of a political nature as may be specified under subsection one of Section Five by the central government or last one that is Association or the company clear Association or the company engaged in the production or broadcast of the audio news clear Association or the company engaged in the production or broadcast of the audio news or audio visual news or current affair programs through an electronic mode or any other electronic form as defined in the Clause R of subsection I of section two of the information technology act 2000 or any other mode of the mass communication clear or any other mode of the mass communication these are all the not entities that is eligible for foreign contribution clear that are the entities not eligible for the foreign contribution to be here or correspondent or columnist cartoonist a detor owner of the association or the company to refer to or the individual or Association who have been prohibited from receiving the foreign contribution clear all are to be the entities that are not eligible to receive the foreign contribution and definitely four to five questions from this chapter and all are very easy question just you have to go through the session at least two times you are able to score four to five marks for all session you can join our special batches for any query you can mail on our email ID next one that is the foreign Source all links are to be present in the description of the video foreign Source foreign Source basically as defined in section two or FC 20110 includes that is the government of any foreign currency country or territory and any agency of such government basically foreign so that is the government of any foreign country or territory or and any agency of such a government second one any International agency not being the United Nations or any of its specialized agencies the World Bank international monetary fund or such other agency as the central government May by notification specify in this behalf or a foreign company okay so all these are to be considered under the foreign sour so further that is FC 2010 emphasizes probating activities detrimental to the National interest clear basically they will identify clear that money which will be coming from the foreign country and that will be detrimental to the National interest that they are going to be probit that entities here fourth one that is a Corporation not being a foreign Company Incorporated in a foreign country or territory a multinational corporation refer to as in subsection 2G sub Clause 4 of the FC 2010 sixth one that is a company within the meaning of the companies act 1956 and more than one half of the nominal value of its share capital is held either singly or in the aggregate clear a company within the meaning of the companies act 1956 and more than one one half of the nominal value of its share capital is held either singly or in the aggregate by one or more of the following namely the government of a foreign country or territory or the citizen of a foreign country or territory or Corporation Incorporated in a foreign country or territory trust Societies or other Association of the individual whether incorporated or not formed or registered in a foreign country or territory or a foreign company clear all these are to be the eligible for as a foreign Source clear either it is the government of a foreign company or citizen or company trust Societies or associations or corporations or last one that is the foreign company a trade Union in any foreign country or territory whether or not registered in such foreign country or territory six one that is a foreign trust or a foreign Foundation by whatever named called or or such a trust or Foundation mainly financed by a foreign country or the territory a society club or other Association or individuals formed or registered outside India or a citizen of a foreign country okay all these are the sources of the foreign income note that is a few bodies or organization of the United Nations World Bank and some other International agencies or multilateral organizations are Exempted from this definition and are not treated as the foreign source as the fund received from them are not considered to be as the foreign contribution clear basically which organization the United Nations World Bank and some other International agencies multilateral organization okay registration and prior permission there are two models of obtaining permission to accept the foreign currency contribution ing to the FC 2010 that is registration and second one that is the prior permission what is that first one that is the registration second one that is the prior permission so concept of permanent registration here done away with the FC 2010 entities to renew registration after every 5 years now clear that istion it is valid only up to 5 years and after every 5 years they have to be renewed eligibility for the registration so for the grant of registration under the FC 2010 the association should be eligibility first one it should be registered with an existing statute like the society's Deion act or the Indian Trust Act 1882 or section 25 of the companies act 1956 further that is normally be in existence for at least 3 years and has undertaken reasonable activity in its Stan field for the benefit of the society for which the foreign contribution it is proposed to be utilized for this purpose the association should have spent at least 10 lakh over the last three years on its means and objectives aims and objectives excluding the administrative expenditure clear they have spent on its aims and objects excluding the administrative expenditure or statements of income and expenditure duly audited by the chartered accountant for the last three years are to be submitted to substantiate that it means the financial parameter clear that it meets the financial parameter to be here this is the eligibility for the registration now next one that is eligibility for the prior permission an organization in formative stage it is not eligible for registration such organization basically May apply for Grant of Prior permission under the FC 2010 that is in the formative stage clear not well established in now so prior permission it is granted for reip of a specific amount from a specific donor for carrying out the specific activities or the projects for this purpose the association should meet the following criteria first one it should be registered under the existing statute like the society registration act 1860 or it should be the Indian Trust Act 1882 or section 25 of the companies act 1956 second one submit a spe specific commitment letter from the donor indicating the amount of the foreign contribution button and for the purpose for which it is proposed to be given here clear and for the purpose for which it is proposed to be given and third one for Indian recip organization and foreign donor organizations have common members clear for Indian Reit organization and foreign donor organization have common members FC prior permission shall be granted to the Indian recipent organization subject to the satisfying the following condition what are the following condition which they have to satisfy the first one the chief functionary of the recipent Indian organization clear the chief functionary of the recipient Indian organization should not be a part of the donor organization okay the chief functionary of the recipient Indian organization should not be a part of of the donor organization second one at least 51% of the office bearers or members of the governing body of the Indian Reit organization should not be the members or employees of the foreign donor organization in case of a foreign donor organization basically being a single person or individual so that person should not be the chief functionary or the recipient of the Indian organization okay so all points are to be similar type of the points here fourth one one that is in the case of a single foreign donor at least 51% of the office bearers or the members of the governing body of the Shi organization should not be the family members or close relatives of the donor here clear here what is the meaning say that is they want to say that the recipent and the donor are to be the different clear both are to be the different nor the members of the same family or not the same members to be here clear that is the eligibility for the prior permission so conditions for the grant of registration and thei prior permission first one that is the person making an application for the registration or Grant of Prior permission it is not fous or benami has not been prosecuted or convicted for indulging in activities aimed at conversion through inducement or Force either directly or indirectly from one religious Faith to the another has not been prosecuted or convicted for creating the communal tension clear has not been prosecuted or convicted for creating the communal tension or disharmony in any specifi District or any other part of the country clear has not been prosecuted or convicted for creating the communal tension or disharmony in any specified District or any other part of the country to be here has not been found G of diversion or misutilization of its funds fifth one it is not engaged or likely to engage in propagation of sedition or Advocate violent methods to achieve its end clear or is it is not likely to use the foreign contribution for personal gains or divert it for the undesirable personal purposes clear it is not likely to use the foreign contribution for the personal gains or diverse it for undesirable purposes has not been contravened any of the provisions of this act has not been prited from accepting foreign contribution the person being an individual such individual has neither been convicted under any law for the time being enforced or not any prosecution for any offense is pending against him last one that is the person being other than the individual any of its directors or office beers has neither been convicted under any law clear has neither been convicted under any law for the time being enforced nor any prosecution for any offense it is pending against him okay so that is regarding the conditions for the grant for permission and registration further that is the acceptance of foreign currency by the Association of person it is not likely to affect the prejudicially the sovereignity and integrity of India the security strategic scientific or economic interest of the state the public interest clear that is it will be beneficial for the country further Freedom or fairness of election to any legislature friendly relationship with any foreign State Harmony between the religious racial social linguistic religional groups cast or communities further that is the acceptance of foreign contribution shall not led to incitement of any offense shall not endanger the life or physical safety of any person clear only basically it basically it means that FC that is it will be beneficial for the country if it will not so they have to be take care regarding that and they have to proit that things here procedure for applying for the registration or the prior permission application for Grant of registration or prior permission it is to be submitted online in form fc3 along with all the requisite documents for registration the association it is required to pay a fees of rupes 2,000 and for prior permission that is fees is rupes 1,000 clear very very important for registration the fees it is to be R 2,000 and for prior permission it is to be rupes 1,000 and the fee necessarily to be paid online through the payment Gateway and no draft or Bank check is accepted very very important registration 2,000 and basically who are registered that are working in the save hill from the last 3 years and have spending at least 10 lakh over its aims and objectives and prior permission rupees 1,000 utilization of the funds the association should utilize such funds for the welfare purposes or activities for which it is to be received here the utilization should be in line with the objectives of the association however foreign contributions can be utilized for the self sustaining activities not mean for the commercial purposes clear however foreign contributions can be utilized only for the self sustaining activities not mean for the commercial purposes to be here the foreign contribution received only the foreign contribution should be received only in the inclusive single FC account of a bank also called the designated FC account as mentioned in the order for registration or the prior permission granted and should be separately maintained by the Association however one or more account that is the utilization account account in one or more Banks can be opened by the Association for utilizing the foreign contribution after it has been received in the designated FC bank account okay after receiving they can utilize a transfer that funds into the other organizations clear for further utilization here that no funds other than that foreign contribution shall be received or deposited in such account or accounts and in all such cases intimation in fc6 foreign contribution 6 is is to be given online within 15 days of the opening of such account clear within 15 days and for the procedure of applying for deis or prior permission it is to be submitted online in form fc3 and for the fs fc6 and it is to be given online within 15 days of the opening of such account to be here and what is the bank role in the FC constituents should select a scheduled bank that is any of the bank included in the second schedule of the RB 1934 authorized to deal with the foreign exchange for routing the foreign contribution since the FC account through which foreign contribution it is proposed it is to be received and utilized is to be mentioned in the application seeking a registration or the prior permission as the case may be the association should s open such a an exclusive FC account with the bank this account number would be mentioned in the letter granting registration or prior permission to the association however the banks should not allow any foreign inward remittances in that account till such time the association is granted registration or prior permission as the case may be here it is not necessary for the bank to report foreign contribution that is returned to the donor without crediting in the account of the for that it is not NE necessity clear because that amount it is not credited in the account of that organization or the re for whatsoever reason however banks have to report transfer of funds clear further that is Bank have to report transfer of fund from one fcr registered Association to the another there is no minimum balance requirement in the FC accounts under the FC 2010 very very important as such there is not any minimum amount or minimum balance requirement under that last one that is the suspend and cancellation here central government under certain circumstances can suspend or cancel thetion or prior permission with attendant consequences such as an ineligibility of further registration or ineligibility to receive contribution and inability to utilize unutilized funds in the account clear as per the terms and condition if they are not find suitable so they will suspension and cancellation penalties under FC 2010 section 11 of the FC 2010 prescribes that no person save as other provided in that and shall accept foreign contribution unless such person obtain the certificate of registration or prior permission of the central government therefore acceptance of foreign contribution without obtaining a registration or prior permission from the central government constitutes an effect offense under that and it is to be punishable here clear so therefore acceptance of foreign contribution without obtaining a registration or prior permission from the central government constitutes an offense under the act and it is to be punishable the offense includes making of false statements declaration or delivering the false accounts giving false intimation under subsection 3 of section 9 or section 18 or seeking prior permission or registration by the means of fraud false representation or concealment of the material effect various penalties have been prescribed in the act for the various violations are to be here okay so these are regarding the FC so this this is one question present on your screen now that what was the earlier version of FC 2010 FC 1976 1973 di 1939 and fmr 1999 the correct answer here that is fcr 1976 option number a the provision of FC 2010 are appable to whole of India except Jammu and Kashmir whole of India the citizen of SAR countries or infrastructure company clear so it will be applicable to the whole of India option number B will be the answer here clear so when you are going through the sessions properly you are able to answer all the questions very easily and you are able to get the marks and definitely from this topic you are able to get four to five marks very easily just go through the slides I will provide you some of the questions in the group for the practice purpose so thanks to all of you for joining this discussion

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