| Question And Answer | |
|---|---|
| Subject: | Whether Charitable Trust registered under S.12A of the Act , which is engaged in the promotion of music organising online classes can receive the fees in Foreign Exchange ? |
| Category: | Income-Tax |
| Querist: | R Mugunthan |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | charitable trust, Foreign contribution |
| Date: | May 15, 2021 |
Whether a public charitable registered u/12A engaged in promotion of music by organizing online classes and conducting various programmers.
It is not regd under FCRA.
Whether it can receive money in foreign exchange from students abroad and also contribution for programmers from foreign rasikas to view the programmers online.
As per explanation 3 to section Section 2(1)(h) of FCRA, 2010, 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 or a foreign source towards such fee or cost shall be excluded from the definition of foreign contribution.
Therefore, the amount received as fees for coaching and participating in seminars should not considered for the purpose of FCRA, 2010. This has also been clarified at FAQ No. 12 vide Press Release dated December 1, 2020. However If the Trust is proposing the receive regular contribution from abroad it may be desirable to get it registered.
As per explanation 3 to section Section 2(1)(h) of FCRA, 2010, 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 or a foreign source towards such fee or cost shall be excluded from the definition of foreign contribution.
Therefore, the amount received as fees for coaching and participating in seminars should not considered for the purpose of FCRA, 2010. This has also been clarified at FAQ No. 12 vide Press Release dated December 1, 2020. However If the Trust is proposing the receive regular contribution from abroad it may be desirable to get it registered.