Re: CBOs and Direct Taxes Code

[Guest guest]

Sir

Re: /message/11624

I feel that although on the basis of the wording of the section it seems that

the organisation will not qualify as a non-profit organisation in case it works

for the benefit of members means if it only limits it works to people who are

members.

But, any CBO would not stop working for Sex workers, MSM etc just because they

are not their members. A CBO would work for them whether they are members or

not, hence any CBO cannot be said to be working only for its members and would

not have such conditions in its bye laws.

Secondly, as per clause i of the said definition, the organisation should be

established for benefit of general public, and Sex workers, MSM etc are all part

of general public.

The idea behind this legislation is to take away the benefit from those

organisations which only work for the benefit of their members and not for

general public.

Another, aspect is that the funds given by SACS are restricted grants to be used

as per the guidelines and directions. These grants do not result in any profit

for a CBO. Hence, the question of grants of SACS being effected does not arise.

The matter would only affect the excess of income over expenditure which an NPO

has and its usage in program purposes.

Regards,

CA. Anshuman Bardhan

e-mail: <anshumanbardhan@...>