CBOs and Direct Taxes Code

[Guest guest]

Sir:

Re: /message/11624

Proposed direct taxes code in the prsent form will create problems for

Community Based Organisations (CBOs). As a social activist working to

strengthen CBOs I feel it is my duty to bring up this point.

Chapter VI, Section 1.2 (a) (iv) states that an organisation will be

considered non-profit organisation

* " if it is not established for the benefit of any of its members. " *

If this clause is applied all the community based organisations (CBOs) will fall

out of the list of non-profit organisations. By the very concept community based

organisations are welfare organisations working for the welfare of the community

for which it is established.

For ensuring democratic process and active involvement of members in the

community, most of the CBOs motivate maximum people to become members in the

CBO. This means that CBO will be working for the welfare of the members and

hence benefits will shared for the members.

Under the HIV prevention programme large many CBOs of sexual minorities and

commercial sex workers have been promoted and most of them are registered under

Societies registration act 1860, Indian trust act or relevant state acts and

hence in nature their legal status is that of non-profit organisations.

Primary focus of the CBOs is to make all the HRGs in their area to be members of

the organisation.

With the new DTC legally CBOs cannot be considered as non-profit

organisations and their registration under this act will be void. In this

respect funding to them through SACS will be a question.

Hence I request all concerned to take up this issue and advocate for a legal

framework for registration and functioning of CBOs or include community based

organisations also as non-profit organisations even though they are established

for the benefit of their members

Regards,

Lukka T.O

Technical Support Unit of Kerala State AIDS Control Society

IPP Building , Red Cross Road

Trivandrum

Kerala Ph: 09645106642

e-mail: <lukka.thurayil@...>