Following query received from Mr. Vidya Sagar Devabhaktuni, President, SKG Sangha. Kindly provide your responses.
Dear Sir,
can anybody through light on the following provisions:
18.
(1) Every person who has been granted a certificate or given prior approval under this act shall give, within such time in such manner as may be prescribed, an intimation to the central Government, and such other authority as may be specified by Central government, as to the amount of each foreign contribution received by it, the source from which and the manner in which such foreign contribution was received , and the purposes for which , and the manner in which such foreign contribution was utilised by him.
(2) Every person receiving foreign contribution shall submit a copy of a statement indicating therein the particulars of foreign contribution received duly certified by officer of the bank or authorised person in foreign exchange and furnish the same to the Central Government along with the intimation under sub-section(1).
My query is whether do we need to inform the Government every time we receive foreign contribution? Or is it enough if w submit FC-6?
Please advise.
Regards,
Vidya Sagar Devabhaktuni
President, SKG Sangha
#532, 2nd Main Road, Gandhi Nagar,
KOLAR – 563 101
Karnataka State, INDIA
Dear Sir,
Please see below our response to the query mentioned in the trailing email:
Section 18 of the Foreign Contribution (Regulation) Act, 2010 (“Act”) mandates the following:
Section 18 (a) mandates that, a person who has been granted a certificate or given prior approval under this Act shall be required to provide an intimation to the Central Government providing details pertaining to: (i) the amount of each foreign contribution received by it; (ii) the source from which the contribution was received; (iii) the manner in which such foreign contribution was received; (iv) the purposes for which the contribution was received; and (v) the manner in which such foreign contribution was utilised.
Section 18(b) mandates that, every person receiving foreign contribution shall submit, a copy of a statement on the foreign contribution received which duly certified by by officer of the bank or authorised person in foreign exchange and furnish the same to the Central Government.
Further, Rule 17 of the Foreign Contribution (Regulation) Rules, 2011 (“Rules”) provides that the intimation of the foreign contribution by the recipient has to be provided in by annual filing of FC-6 before the completion of 9 months from the end of the FY i.e. 31st December.
Rule 16 of the Rules provides that, with respect to the Bank, the Bank shall have the responsibility of intimating the Central Government within 30 days of a transaction wherein funds are received into an account who is required to obtain prior – permission or a certificate under the Act but who was not granted such certificate or prior permission as on the date of receipt of such remittance. The Bank shall also have the responsibility to send a report to the Central Government within thirty days from the date of such last transaction wherein the foreign contribution received is in excess of Rs. 1 crore in a single remittance.
Regards,
Dipti, Shantanu, Veena.
Dear Vidya Sagar,
Greetings from Hyderabad!
Please note that this pertains to the filing of FC-6 and this has to be informed in the form of annual returns once in a year before the completion of 9 months from the end of the FY i.e. 31st December. With respect to the bank, the onus is on the banks to inform the MoHA in two cases:
1. When funds are received from a foreign source into an account which is not a designated FC account
2. When a FC designated account receives more than Rs. 1 crore as single remittance.
Both the above intimations have to be sent within 30 days of such event happening.
I hope this gives some clarity on the issue.
Thanks and regards,
B V Soma Sastry