TaxTMI 
TaxTMI 
Guidelines for consideration of proposals for acceptance of foreign hospitality under the Foreign Contribution (Regulation) Act, 2010
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....1 (FCRR, 2011) have come into force with effect from 01.05.2011. The provisions under the Act/Rules relating to 'foreign hospitality' and guidelines to be followed for consideration of proposals for acceptance of the same are hereby circulated for information and compliance by all concerned. 2. Statutory Provisions: The relevant provisions of FCRA, 2010 are reproduced below: Section 2 (1) (i): "Foreign Hospitality" means any offer, not being a purely casual one, made in cash or kind by a foreign source for providing a person with the costs of travel to any foreign country or territory or with free boarding, lodging, transport or medical treatment. Section 2 (1) (j): "Foreign source" includes - ....
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....n of individuals formed or registered outside India; (x) a citizen of a foreign country. *A corporation incorporated in a foreign country or territory shall be deemed to be a multi-national corporation if such corporation - (a) has a subsidiary or branch or place of business in two or more countries or territories; or (b) carries on business, or otherwise operates, in two or more countries or territories. Section 2 (1) (k): "Legislature" means - (A) either House of Parliament; (B) the Legislative Assembly of a State, or in the case of a State having a Legislative Council, either House of the Legislature of that State; (C) Legislative Assembly of a Union Territory constituted under ....
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....or the time being. Section 6 - Restriction on acceptance of foreign hospitality: No member of a Legislature or office-bearer of a political party or Judge or Government servant or employee of any corporation or any other body owned or controlled by the Government shall, while visiting any country or territory outside India, accept, except with the prior permission of the Central Government, any foreign hospitality: Provided that it shall not be necessary to obtain any such permission for an emergent medical aid needed on account of sudden illness contracted during a visit outside India, but, where such foreign hospitality has been received, the person receiving such hospitality shall give, within one month from the date of receipt ....
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....s of FCRR, 2011 are reproduced below: Rule 7 - Receiving foreign hospitality by specifies categories of persons. - (1) Any person belonging to any of the categories specified in Section 6 who wishes to avail of foreign hospitality shall apply to the Central Government in Form FC-2 for prior permission to accept such foreign hospitality. (2) Every application for acceptance of foreign hospitality shall be accompanied by an invitation letter from the host or the host country, as the case may be, and administrative clearance of the Ministry or Department concern in case of visits sponsored by a Ministry or Department of the Government. (3) The application for grant of permission to accept forei....
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....gn hospitality is being provided by an Indian national living in a foreign country or territory. (iv) Cases involving acceptance of an assignment on salary, fee or remuneration etc. (v) Cases involving funding offered by an agency/organization mentioned in Annexure-2. (vi) Cases involving visits undertaken by the Members of an Indian Parliamentary delegation under bilateral exchange. (vii) Cases involving visits undertaken in pursuance of a bilateral agreement between the Government of India and the Government of the country concerned, approved by the Ministry of Finance (Department of Economics Affairs). (viii) Cases involving long term/short term foreign train....