Implications on CSR spending of the proposed amendment to the definition of Foreign Source under the FCRA Regulation

One of the major proposals in the Finance Bill 2016 pertain to amendment to be brought in the Foreign Contribution Regulations Act, 2010 (‘FCRA’) by amending the definition of ‘foreign source.’ Pursuant to the proposed change, which if legislated would facilitate smoother movement of funds by the Indian companies (which are foreign owned), which are required to mandatorily comply with the Corporate Social Responsibility (CSR) regulations under the Companies Act 2013.

An overview has been provided in the enclosed Newsflash about the proposed change in the FCRA regulation and its implication to foreign owned Indian companies from the CSR perspective.

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Implications on CSR spending of the proposed amendment to the definition of Foreign Source under the FCRA Regulation