Define 'foreign contribution' under the Foreign Contribution (Regulation) Act, 2010.

CS Executive · Economic and Commercial Laws · PYQS · June 2015
Define 'foreign contribution' under the Foreign Contribution (Regulation) Act, 2010.

Answer & Explanation:

As per Section 2(1)(h) of the Foreign Contribution (Regulation) Act, 2010, 'foreign contribution' means the donation, delivery or transfer made by any foreign source, - of any article, not being an article given to a person as a gift for his personal use, if the market value, in India, of such article, on the date of such gift, is not more than such sum as may be specified from time to time, by the Central Government by the rules made by it in this behalf; of any currency, whether Indian or foreign; of any security as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 and includes any foreign security as defined in clause (o) of section 2 of the Foreign Exchange Management Act, 1999. Explanation 1: A donation, delivery or transfer of any article, currency or foreign security referred to in this clause by any person who has received it from any foreign source, either directly or through one or more persons, shall also be deemed to be foreign contribution within the meaning of this clause. Explanation 2: The interest accrued on the foreign contribution deposited in any bank referred to in subsection (1) of section 17 or any other income derived from the foreign contribution or interest thereon shall also be deemed to be foreign contribution within the meaning of this clause. Explanation 3: Any amount received, by any person from any foreign source in India, by way of fee (including fees charged by an educational institution in India from foreign student) or towards cost in lieu of goods or services rendered by such person in the ordinary course of his business, trade or commerce whether within India or outside India or any contribution received from an agent of a foreign source towards such fee or cost shall be excluded from the definition of foreign contribution within the meaning of this clause.

Topics: Foreign Contribution (Regulation) Act, 2010

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