Foreign source as per of the Foreign Contribution means the government of any foreign country or territory or its agency,
International agency a foreign company citizen of a foreign country of the Foreign Contribution, In other words, the foreign source may be Government of a foreign country and its agencies. Any international agency, A foreign company including its subsidiary A foreign corporation A multinational corporation state. A company with more than 50% foreign equity A trade union in any foreign country. A foreign NGO trust or foundation 7. A social club or other association of individuals formed or NGO registered outside India.
In India, the aspect of the Foreign Contributions, by associations such as Ngo, is regulated by the Foreign Contribution (Regulation) Act, 1976 (FCRA). The FCRA stipulates, in terms of Section 4 of the Act, that no foreign contribution shall be accepted by any candidate for election; correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper; judges, government servants or employees of any corporation; members of any legislature; political party or office bearer thereof. Subsections (a) and (b) of Section 10 of the FCRA provide that the Central Government may prohibit any prescribed association or any person, from accepting any foreign contribution or require any association to obtain prior permission of the Central Government before accepting any foreign contribution. Section 5 of the FCRA also provides that no organization of a political nature, not being a political party can accept foreign contribution except with the prior permission of the Central Government.
Foreign Contribution regulation act
Foreign Source is defined in section 2(1)(e) of the FCRA. The definition is an ‘inclusive’ definition.
The foreign source includes:
i.) The Government of any foreign country or territory and any agency of such a Government,
ii.) Any international agency, not being the United Nations or any of its specialized agencies, the World Bank, International Monetary Fund or such other agency as the Central Government, may, by notification in the official Gazette, specify in this behalf,
iii.) A foreign company within the meaning of section 591 of the Companies Act, 1956 (1 of 1956), and also includes-
(a) a company which is a subsidiary of a foreign company, and
(b) a multi-national corporation within the meaning of this Act.
iv.) A corporation, not being a foreign company, incorporated in a foreign country or territory,
v.) A multi-national corporation within the meaning of this Act,
vi.) A company within the meaning of the Companies Act, 1956, if more than one-half of the nominal value of its share capital is held, either singly or in the aggregate, by one or more of the following, namely:
(a) Government of a foreign country or territory,
(b) Citizens of a foreign country or territory,
(c) Corporations incorporated in a foreign country or territory,
(d) Trust registration , societies or other associations of individuals (whether incorporated or not), formed or registered in a foreign country or territory,
vii.) A trade union in any foreign country or territory, whether or not registered in such foreign country or territory,
viii.) A foreign trust by whatever name called, or a foreign foundation, which is either in the nature of the trust or is mainly financed by a foreign country or territory.
ix.) A society registration, club or other association of individuals formed or registered outside India,
x.) A citizen of a foreign country, but does not include any foreign institution, which has been permitted by the Central Government by notification in the Official Gazette, to carry on its activities in India.
