FCRA Dept, has recently come out with a Gazette Notification No. SO 2291 (E) dated 5 June 2018, which has completely revamped the compounding penalties under FCRA Act 2010, superseding earlier two Notifications (SO 1976(E) dt 26th Aug 2011 and SO 2133(E) dt 16th June 2016.
The new notification covers a large number of offences specified within the FCRA Act 2010 and seems to be quite comprehensive. Let us briefly look at these offences and penalties imposed.
|1.||Acceptance of Foreign Hospitality without Prior Permission (S.6)||Rs 10,000/-||Not covered earlier|
|2.||Transfer of FC to any other person who does not have registration or prior permission. (S.7)||Rs 1 lakh or 10% of trfd whichever is higher.||Not covered earlier.|
|3.||Violating 50% limit on Admin Exps. (S. 8)||Rs 1 lakh or 5% of excess amount spent on Admin. whichever is higher.||Not covered earlier.|
|4.||Accepting FC without registration or Prior Permission (S. 11)||Rs 1 lakh or 10% of amount so accepted whichever is higher.||Earlier this penalty was for 2%-5%, with minimum range from Rs 10k to Rs 1 lac, whichever higher.|
|5a.||Accepting FC in any account other than designated account.||Rs 1 lakh or 5% of amount so accepted whichever is higher.||
|5b.||Non-reporting of such amount by banks and concerned entity.||Rs 1 lakh or 3% of amount so rec’d or deposited whichever is higher.||-ditto-|
|5c.||Non-FCRA funds deposited in designated account.||Rs 1 lakh or 2% of amount so deposited whichever is higher.||Not covered earlier.|
|6.||Non-intimation of receipt of FC as per S.18||Rs 1 lakh or 5% of amount so rec’d during non-submission period, whichever is higher.||Not covered earlier.|
|7.||Non-maintenance of account and records as per S.19 of the Act.||Rs 1 lakh or 5% of FC during non-maintenance period, whichever is higher.||Not covered earlier.|
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