FEMA and International Taxation
- Foreign Contribution (Regulation) Act, 2010
- Accounts & Audit
- All FCRA services online
- Applicability
- Change of designated bank account, name, address, aim, objects or key members of the association
- Declaration of receipts of foreign contribution
- Foreign Contribution
- Inspection & Seizure
- Introduction
- Penalty
- Registration of the Association
- Restriction on Administrative Expenses
- Restrictions on acceptance of foreign hospitality
- Restrictions on Accepting FC
- Speculative Activity
- Total Ban on acceptance of Foreign Contribution & Hospitality
- Transfer of FC to other Registered or Unregistered Persons
- Foreign Exchange Management Act, 1999
- Acquisition and transfer of Immovable property in India
- Acquisition and Transfer of Immovable Property outside India
- Bank Accounts in India
- Borrowings from Non-residents
- Branch/Liaison/Project Office in INDIA
- Branch/Liaison/Project Office outside India
- Capital & Current Account Transactions
- Compounding & Contravention under FEMA
- Cross Border Merger Regulations
- Introduction
- Investment in India
- Miscellaneous
- Overseas Direct Investments
- Residential Status under FEMA
- Trade Transactions – Import & Export
- International Taxation
Accounts & Audit
7.1 Maintenance of accounts
- Accounts to be maintained on yearly basis from April to March.
- Every person receiving FC shall maintain an account of any FC received and its utilisation.
- Income & expenditure statement, receipt & payment account and balance sheet are to be prepared exclusively in respect of the FC received.
- Details in Form FC 1 to be maintained where FC relates to articles and foreign securities.
7.2 Designated bank account
- FCRA funds can be received and held only in the designated bank account.
- Besides the designated bank account, operational accounts in one or more banks may be opened for the limited purpose of utilising the foreign contribution. Such accounts are commonly referred to as field accounts. In such cases, intimation in Form FC–6D shall be furnished electronically to the Secretary, Ministry of Home Affairs within 15 days.
- Designated or field accounts are strictly prohibited from receiving non-FC funds.
- Interest earned out of FC funds should be deposited in designated bank account.
7.3 Audit
- Income & Expenditure account, Receipts & Payment account and Balance Sheet, with report in Form FC 4 duly certified by a CA to be submitted to Home Ministry before 31st of December immediately following the end of financial year.
- Form FC 4 to give details of each contribution received, the source, manner of receipt, purpose of receipt and manner of utilisation.
- Even Nil report has to be submitted. However, where no FC has been received or utilised during a financial year, only FC 4 is required to be submitted, without the need to enclose certificate from Chartered Accountant, income and expenditure statement, receipt and payment account or balance sheet.