Central Govt. notifies Foreign Contribution (Regulation) (Amendment) Rules, 2020 [Read Notification]

Central Govt - Foreign Contribution - Amendment - Taxscan

The Central Government notified the Foreign Contribution (Regulation) (Amendment) Rules, 2020 which seeks to amend the Foreign Contribution (Regulation) Rules, 2011.

In the definition clause “electronic form” shall have the same meaning assigned to it in clause (r) of sub-section (1) of section 2 of the Information Technology Act, 2000, which says that means any information generated, sent, received, or stored in media, magnetic, optical, computer memory, microfilm, computer-generated micro fiche or similar device.

The “FCRA Account” means the FCRA Account referred to in section 17 of the Act which pertains to the Intimation of foreign contribution by the recipient.

In the rules, in rule 9, in clause (a), for the words “electronically online”, at both places where they occur, the words “in electronic form” shall be substituted. Any person making an application for registration under clause (a) of sub-rule (1) shall have an FCRA Account.”

“If the person wants inclusion of its existing capital investment in assets like land, building, other permanent structures, vehicles, equipment in the computation of its spending during last three years, then the chief functionary shall give an undertaking that the assets shall be vested henceforth with the person till the validity of the certificate and they shall be utilized only for the activities covered under the Act and the Rules made thereunder and shall not be diverted for any other purpose till the validity of its certificate of registration remains valid,” the notification said.

The amendment said that an application for compounding of an offense under section 41 may be made to the Secretary, Ministry of Home Affairs, New Delhi in electronic form and shall be accompanied by a fee of Rs.300/-, which shall be paid through the payment gateway specified by the Central Government.

In the rules, for the FORMS FC-1 shall be substituted which pertains to intimation to the Central Government of receipt of foreign contribution by way of gift from relative by an individual / foreign contribution in the form of articles/ securities/ by a candidate for election under section 21 of the Foreign Contribution (Regulation) Act, 2010.

In the rules for the FORMS FC-2 which pertains to application for seeking prior permission of the Central Government to accept foreign hospitality.

In the rules for the FORM FC-3A which pertains to the application for ‘registration’ under sub-section (1) of section 11 of the Foreign Contribution (Regulation) Act, 2010 for the acceptance of foreign contribution by a Person/association having a definite cultural, economic, educational, religious or social program.

In the rules for the FORM FC–3B, which pertains to application for ‘prior permission’ under sub-section (2) of section 11 of the Foreign Contribution (Regulation) Act, 2010 for the acceptance of foreign contribution by a person/association having definite cultural, economic, educational, religious or social program.

In the rules for the FORM FC – 3C which pertains to Application for ‘renewal’ under section 16 of the Foreign Contribution (Regulation) Act, 2010 (42 of 2010) for the acceptance of foreign contribution by a person/association having definite cultural, economic, educational, religious or social program.

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