Service tax and NGos

Hi,

We (GVNML organization having state registration that is 1958, society and 12 AA ) also and we had did IEC activities (community participation in drinking water supply to 265 villages) we need to pay service tax. We are getting payments from Govt. (PHED Deptt.) as contractor. Are we under service tax? Pls guide me.

Regards

Jagveer Singh

Posted in FCRA, TAX, LEGAL | 3 Comments

Sludge to run buses in an environmentally clean way

Ambitious as it may sound, but Delhi plans to run its buses on biogas produced from waste and dirty sludge. After CNG, the national capital is all set to run its public transport fleet on biogas!!!  Although, Delhi already boasts running the world’s largest fleet of vehicles on CNG, the latest endeavor would be great as it would be cost-effective and a win-win solution.

Presently one of the major problems is management of sludge coming out of Sewage Treatment Plants (STPs). While treating this sludge, Delhi Govt plans to produce bio-gas at Keshopura STP, which is of high quality and can be compared with CNG. The STP, functioning partially at present, can treat 72 million litres of wastewater per day. The bio-gas produced from sludge treatment would be used as a complementary fuel for running 120 CNG buses. This is a pilot project and subsequently, if successful, there will be expansion.

The technology for this process is being provided by Swedish government. This innovative step would be a great way to achieve energy conservation and it would further also reduce 10,000 tonnes of carbon dioxide per year.

Posted in Environment | 1 Comment

TDS on International payment for NGO

Dear members,

We have also a query on TDS on  International transaction/payment .

Our organisation has  FCRA & 12A Certificate.  If any funder (abroad) has deducted any TDS from our payment . What is the remedy  to claim that TDS amount in India

Usually, we receipt against project funds/consultancy fee/ research work.

Request all of you, kindly clarify us.

With kind regards,

L N Sharma

 

Posted in FCRA, TAX, LEGAL | 1 Comment

Trusts/societies and Companies Act-section 25

Dear Friends,

Given the resource crunch, NGOs/CSOs have to think of earning for serving. So as not to get entangled in Tax web, some of them are planning to go for separate body under (not- for-profit) Companies Act-25. They can’t afford to have a separate CEO for the Company which is supposed to spare surplus money earned for running the Charitable NGO. Do the rules permit one CEO heading both the Charitable NGO and the not-for-profit Company. Few of the Governing body members of the NGO could be on the Board of the Company for safety.
If a common CEO is permitted, what precautions should be taken? Can terms like “Trade” be used by such a Company?
Please advise.

Uday

Posted in FCRA, TAX, LEGAL | 1 Comment

Service tax liability for NGO

I have a query on service tax payment & registration:-

Our organization has got 12 AA registration.

For the car hiring charges/security charges do we need to register ourself for the service tax and do we need to pay the reverse charges or as per notification /circular no:25 we are exempted from service tax

Could u please clarify?

Cheers,
Ramya Haricharan

Posted in FCRA, TAX, LEGAL | 4 Comments

Slums contribute most to city’s economy but continue to remain eyesores

Slums are part and parcel of most cities. In fact in India slums cover 30-50% of the population. Different governments have tried to solve the problem of slums in their own ways, for example, Madhya Pradesh started with grant of tenure or ‘’patta’’, hoping that entitlement to ‘title’ would give access to essential services. Similarly, the UP government has declared allotting of free houses to BPL families and have declared that the scheme would allot homes in 60 different towns and cities of UP. Problem is that most schemes, however, have seldom crossed the realm of political rhetoric. Funds are too meagre and the numbers who benefit are always far too small than needed and hence really not replicable.

While different governments have been trying to tackle the problem of slums, but, in spite of all the efforts, the actual problem still persists. Perhaps a deeper look at the problem will help us understand the genesis of problem and then only think of solutions, which are preventive rather than curative.

  • Aspirations of rural dwellers have increased hugely and due to lack of opportunities, a large number of them move to cities,
  • Poor city administration, which does not plan for large influx of persons and how to manage them (recent decision by Supreme Court which has ordered Delhi Administration to construct sufficient number of dormitories, night shelters to accommodate homeless) creates its own problem of scarcity of accommodation and facilities, which gets further accentuated when political patronage allows regularization of unauthorized colonies.
  • While administration frequently announce schemes to tackle problem of slums, however with too meagre funds to match the problem and lack of proper managerial skills, often the schemes remain on paper with hardly any impact on the ground.

Bollywood has contributed in a big way to Mumbai’s legendary symbol of slums. However the Mumbai slums also constitute a real problem, as more than half of the population (52.5% to be precise) lives in slums. Mumbai has tried to involve the private sector. Real estate developers would clear the slums, give free homes to slum dwellers and get incentives in terms of higher FSI so as to recoup expenditure, and make a profit too. As this scheme showed fruitful results, soon it might be replicated in various other cities and states, and might one day become a national policy too!!!

While slum-dwellers contribute majorly to the urban productivity (services being provided at low cost) and the city economy they continue to be deprived and exploited lot and our cities continue to be pictures of stark contrasts.

-based on article by Professor PSN Rao of SPA, New Delhi

Posted in Urban Governance | 1 Comment

Unregulated growth of markets add to woes of pedestrians

SRRF Dialogue has been consistently highlighting the issue of pedestrian safety. In a recent article in Hindustan times, the issue of pedestrian safety has been raised.  It has been quoted that pavements & roads in Amar Market in Delhi has been encroached by the shopkeepers.

The Pedestrians suffer a lot as most of the shop keepers have occupied the footpaths and park their vehicles on the road side. The market has about 400 shops. The area is highly congested and there is no space for the pedestrian. In spite of repeated complaints by the residents, no action has taken by the authorities. The warning notices by Police have hardly made any difference to the shopkeeper in absence of firm action by the police. As a result, accident rates have increased and according to the traffic police, 13 hit and run cases in the area have been recorded in the last one month. Earlier, the markets had footpaths having yellow line for the disabled, but these are no longer visible as the shopkeepers have extended their shops. Further, autos and other vehicles remain parked on the road, which adds up to the congestion problem.

Description of Amar Market is in all probability a portrait of almost all markets in the city. In order to get rid of encroachment problem, the civic authorities need to take some stern actions. But this would be possible when both the authorities and the shopkeepers cooperate to bring about the change.

Posted in Pedestrian safety | 1 Comment

Marginalised Catching up with others

For India, development has always being a mixed bag of opportunities as well as neglect and deprivations. It is a well established fact that majority of scheduled castes and scheduled tribes, landless agricultural labourers, poor farmers and slum dwellers, etc are the most marginalized lot.

India has been ranked 134 among 187 countries of the world in terms of the Human development Index (HDI) in 2011. However, further looking into different aspects of this, India Human Development Report, 2011, prepared by Institute of Applied Manpower Research, quoted that minority (Dalits & Muslims) is catching up with the rest. The literacy rates, share of Muslims in pucca housing, access to electricity, have increased to a fair amount.  But, the most worrisome aspect is the healthcare system, which is consistently low.  The table below as given in the report would give a fair understanding of the facts:

From the above table, it can summed up that the condition of the minorities have improved to an extent, still, government needs to take proper initiatives to improve their socio-economic status.

Posted in General | Comments Off on Marginalised Catching up with others

Latest requirements for LO/BO/PO

We share with you contents of a recent circular by RBI (link) , making reporting by Liaison Offices / Project Offices / Branch offices far more stringent.

As per the new requirements alongwith Activity Report an annexe needs to be filed providing following pertinent informations.

1. Complete details of all foreign nationals who visit the entity’s office.

2.  Details of Projects / Contracts / Collaborations worked upon or initiated during the year. (It is not clear if this covers only agreements that a Liaison Office signs with any Indian NGO or does it even cover contracts signed with suppliers of goods / services.)

3. Details of equipment imported

4. Details of supplies or services rendered to Govt. sector.

5. Details of places & states visited alongwith details of dates and accommodation used. (It is not clear who all are covered by this – is it head of the entity or is it all employees or is it all foreigners travelling on account of Liaison Office – this is not clear at all)

6. Details of contacts with Govt Depts / PSUs

7. Details of contacts with Civil Society Bodies/ Trusts / NGOs

We thank Mr Harish Bhutani of Water Aid for bringing the above to SRRF Dialogue’s notice.

With warm regards

Farah

Coordinator

Posted in FCRA, TAX, LEGAL | 3 Comments

Section-25C

Dear Friends,

Greetings from Hyderabad!

I have the following question:

  1. There is a registered Trust/Society with a Chief Functionary in place
  2. The same Trust/Society goes ahead with the registration as a Section 25 company.

My question to all of you is:

  1. Can the CF of the original Trust/Society be the CF of the section 25 company?
  2. If yes, what are the necessary conditions to be followed in this regard.

Thanks and regards,

B V Soma Sastry

Director – Finance and Admin

Centre for World Solidarity

Posted in FCRA, TAX, LEGAL | 3 Comments