From Sudhir Kumar, Plan India
Dear Sir,
Good afternoon !!!
Please refer our discussion regarding payment related to media. As you know that Section 3 of FCRA 2010 specifies that certain persons cannot receive foreign contribution including:
- Correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper.
- Association or company engaged in broadcast of audio or visual news.
- Correspondent, columnist etc. related with the company referred in clause (g)
Can you please help me to understand whether following payment can be made or it is restricted ?
1. Advertisement in Newspaper for invitation on different occasions, like celebration of national and international days.
2. Payment to media for publishing case Studies/Success stories.
Regards
Sudhir Kumar_,_._,___
Dear Sudhir,
While what Soma says is technically correct, however while examining this issue,
one also needs to examine what is `normal course of business’. While accepting
advertisement is a normal course of business for newspapers, and hence there is
no problem in the first instance (i.e. accepting of advertisement), however in
the second situation (paying for publishing stories), I think there is a need to
consider why newspapers should be accepting money for publishing stories. It is
there normal course to cover all newsworthy stories without charging from
anyone. Will the success / case studies come out more as advertisement (special
supplements, etc.) then also this would be considered OK.
Normally we have heard about Paid News, done through PR agencies, etc. (I will
focus only on legal aspect here and not go into the ethical issues that it
raises). In case you are making direct payment to newspapers for publicising
these success stories, etc. then one needs to look at these more closely, before
one can answer the same.
warm rgds
subhash mittal
Dear Sudhir,
Greetings from Hyderabad!
As per section 3 of the FCRA 2010, 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.
d. member of any legislature
e. political party or office-bearer thereof.
f. Organisations of a political nature.
g. Association or company engaged in broadcast of audio or visual news.
h. Correspondent, columnist etc. related with the company referred in clause (g)
The above mentioned persons cannot receive foreign contribution subject to certain exceptions specified in section 4 which are as under:
1. If they receive foreign funds by way of salary, wages or remuneration for services rendered, or if they receive payment in ordinary course of business transaction in India by such foreign organisation or source.
2. If the funds are received in the course of international trade or commerce or in the ordinary course of business transacted outside India
3. Payment is received as an agent of a foreign source of organisation in relation to any transaction made by such foreign organisation with the central or state government.
4. 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.
5. From his / her relative.
6. By remittance under normal course under FEMA 1999.
7. By way of Scholarship, stipend etc.â€
The payments made by you fall under the category (1) in the exceptions to the rule. Moreover, the relation between you and the organizations to whom you are making payments is that of a vendor and vendee where the end utilizations of the funds is also proved.
I am of the opinion that there is no harm in making payments in the cases mentioned by you.
Thanks and regards,
_____________________________________
B V Soma Sastry
Director – Finance and Admin
Centre for World Solidarity
12-13-438, Street No. 1, Tarnaka
Secunderabad 500 017
Andhra Pradesh