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Restriction on acceptance of Foreign Hospitality [ Section 6 ] - FCRA Ready Reckoner - FEMAExtract Restriction on acceptance of foreign hospitality Restriction on acceptance of foreign hospitality [ Section 6 of FCRA, 2010 read with Rule 7 of FC(R) Rules, 2011 ] As per section 2(i) of FCRA Act 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; Restriction on acceptance of foreign hospitality [ Section 6 of FCRA Act] Following person can not accept the foreign hospitality, while visiting any country or territory outside India, accept, except with the prior permission of the Central Government, any foreign hospitality: 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, Exception of Section 6 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, Intimation to CG in case of availing Foreign Hospitality - But, where such foreign hospitality has been received, the person receiving such hospitality shall give, with in one month from the date of receipt of such hospitality an intimation to the Central Government as to the receipt of such hospitality, and the source from which, and the manner in which, such hospitality was received by him. As per Rule 7 of FCR Rules 2011 Receiving foreign hospitality by specified categories of persons.- Take prior approval form Central government As per Rule 7(1) , if any person specified under section 6 wish to avail the facility of foreign hospitality shall take prior permission from central government. The application shall be file to the central government by electronically in FORM FC-2 . Required Documents As per Rule 7(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 concerned in case of visits sponsored by a Ministry or department of the Government. Grant of Permission As per Rule 7(3) The application for grant of permission to accept foreign hospitality must reach the appropriate authority ordinarily two weeks before the proposed date of onward journey. Intimation in case of Medical Emergency As per Rule 7(4) In case of emergent medical aid needed on account of sudden illness during a visit abroad, the acceptance of foreign hospitality shall be required to be intimated to the Central Government within one month of such receipt giving full details including the source, approximate value in Indian Rupees, and the purpose for which and the manner in which it was utilised. Exception that no such intimation is required if the value of such hospitality in emergent medical aid is upto ₹ 1,00,000 or equivalent thereto. Guidelines for consideration of proposals for acceptance of foreign hospitality under the Foreign Contribution (Regulation) Act, 2010 [ order/instruction No. II/21022/58(97)/2011-FCRA-I Dated 20th September 2011 ] A s per regulation 6 of the guidelines for consideration of proposals for acceptance of foreign hospitality, the following cases need not be submitted to the Ministry of Home Affairs (MHA) for grant of permission to accept foreign hospitality:- (i) Where the entire expenditure on the proposed foreign visit is being met by the Central/ State Government or any Central/State PSU etc. ( i i ) Where the proposed foreign visit is being undertaken by a person in his/her personal capacity and the entire expenditure thereon is being met by the person concerned. ( i i i ) Where the foreign hospitality is being provided by an Indian national living in a foreign country or territory. ( i v ) 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. ( v i ) Cases involving visits undertaken by the Members of an Indian Parliamentary delegation under bilateral exchange. ( v i i ) 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). ( v i i i ) Cases involving long term/short term foreign training courses approved by the Ministry of Personnel, Training and Public Grievances.
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