Foreign Contribution Regulation Act has undergone tremendous changes. The Act was untouched for decades before this wave of amendment came. And when it came, the entire scenario is changed. The manual processes of registration, renewal, annual filing is changed to online processes. Quarterly reporting is introduced and so on. Lets have an insight about these changes.
Some FAQs relating to amendments to Foreign Contribution Regulation Act (FCRA) (Amendment dated 14 December 2015)
Q.1. When the amendments become applicable:
Ans: The amendments are applicable with effect from their publication in the official gazette. The effective date of applicability is 14th December 2015.
Q.2. What are the key amendments? What course of action to follow to comply with these amendments?
Ans: The two most important action points from the amended rules:
- FCRA Annual Statement to be posted on your website:
Audited statement of accounts on Receipt and utilization of foreign
contribution, are to be posted on the official website of the organization, including
:
- Income and expenditure,
- Receipt and payment account and
- Balance Sheet
This posting is to be made by 31st December every year.
Analysis of the amendment:
- Earlier this was partially applicable to organizations receiving foreign contribution in excess of 1 Crore in a Financial year.
- Now, that threshold is done away with, making It mandatory to every registered organization.
- So even if no Foreign Contribution is received during a year, this rule is to be complied with.
2. Quarterly
Receipts to be declared on your website:
Within 15 days after every quarter end, foreign contribution received
in the relevant quarter are to be placed on the website. It must contain details of donors, amount received and date of receipt.
Analysis of the amendment:
- This is applicable only in case FC is received.
- If no FC is received in a particular quarter then this rule is not applicable.
- Further, details of utilization of FC are NOT required to be declared on quarterly basis.
Effect
of Non-compliance:
- The Ministry of Home Affairs has NOT prescribed any specific consequences of non-compliance of above provisions.
- However, non-compliance may land the organization into residual penalty sections viz.,– Section 14(d) and Section 37 of the FC(R)A 2010.
- Section 14(d) prescribes for cancellation of Registration in the event of non-compliance with any of the provisions. Similarly, Section 37 prescribes Imprisonment up-to 1 year or fine or both.
3. Updating information about change in utilisation bank account / key members particulars etc
- Earlier any change in FCRA Utilisation Bank Account or any change in particulars of key members or change in particulars of the organisation was to be intimated by writing an intimation on plain paper. Such intimation was to be submitted within 15 days from the date of change.
- Now this intimation is to be done electronically in Form FC-6. This intimation is to be submitted online within 15 days of such change.
The above FAQs are related to FCRA Amendments issued in December 2015. For any further query in this regard, write us at info@capsandco.com.