Page 87 - Quick Insights Book 2022

Chap. 24 – Other Laws

utilisation of foreign contribution or foreign hospitality by certain  Ensure that the annual returns of an association have
individuals or associations or companies (hereinafter referred been prepared in accordance with the provisions of
as “Association”) and to prohibit acceptance and utilisation FCRA, 2010 and FCRR, 2011.
of foreign contribution or foreign hospitality for any activities
detrimental to the national interest and for matters connected Important Links
therewith or incidental thereto. The Act provides to correct the
shortfalls in the predecessor act of1976. The flow of foreign https://fcraonline.nic.in
contribution to India is hence forth regulated under this Act,
Rules and other notification/orders etc., issued there under. 3. CUSTOM LAWS
The Association receiving foreign contribution are required to
exercise extreme care and caution while dealing with foreign EXPORT AND IMPORT VALUATIONS AND ANTI
contribution from the time of its receipt to its final utilisation. DUMPING DUTIES

An association permitted to accept foreign contribution is Export Import Trade/Customs Valuation
required under law to maintain separate set of accounts
and records exclusively for the foreign contribution received Opportunities for professionals occur in the area of business
and submit an annual return, duly certified by a Chartered advisory to their existing clients and new clients who are
Accountant, giving details of the receipt and purpose-wise looking for international opportunities to effect the transition from
utilization of the foreign contribution duly accompanied with domestic trade to foreign trade.
scanned copies of income and expenditure statement, balance Some of the services have been enumerated as under:
sheet and statement of receipt and payment, which is certified
by a Chartered Accountant. Submission of a ‘NIL’ return, even  Advisory on Foreign Trade Policy and Procedures
if there is no receipt/utilisation of foreign contribution during  Compliance with Foreign Trade Procedures
the year, is mandatory. However, in such case, certificate from
Chartered Accountant, audited statement of accounts is not  Setting up 100% EOU/STP/EHTP/BTP/SEZ units
required to be uploaded.
 Assistance in fulfilling the regulatory and licensing
As Chartered Accountants audit the accounts of the requirements
associations and certify the accounts before submission  Obtaining government clearances
to the Government. Chartered Accountants provide proper
guidance to the associations who are either applying for grant  Liasioning across related government agencies
of prior permission/registration or who have been granted prior  Documentation
permission/registration under FCRA, 2010.
 Risk assessment
Chartered Accountants may provide assistance to the
associations in the following areas:  Ensuring compliance of various national rules and
regulations
 Verify eligibility to receive foreign contribution. Guide
the applicant association in submission of application  Judicious management of finance, credit and security
for registration/prior permission.
 Analysis of business operations and facilitation services
 Ensure that the association receives and utilizes the
foreign contributions through its bank account exclusively  Formation of a company/subsidiary of a foreign company
opened for the purpose in accordance with the provisions  Development of strategies and implementation plans
of FCRA, 2010 and FCRR, 2011.Also ensure that foreign according to the specific needs of the clients
contribution is not deposited or utilised from the bank
account being used for domestic funds.  Consulting, documentation and facilitation for
 Assist in the proper maintenance of prescribed books • Taxation
of accounts in accordance with the provisions of FCRA, • Accounting and auditing services
2010 and Foreign Contribution (Regulation) Amendment
Rules (FCRR), 2011. • Exports and imports for Export-Import Policy

74 Quick Insights on Professional Opportunities for Chartered Accountants