Amendment in the Definition of Charitable purpose
An amendment has been made in section 2 (15) by the Finance Act, 2008 with effect from 01.04.2009 that advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application or retention, of the income from such activity
non profit india 2014
As such, the organizations carrying on activities in the nature of trade, commerce, business or any service in relation thereto for a consideration/fee will not be classified as charitable organizations as such activities are proposed to be specifically excluded from the definition of ‘charitable purpose’.
The amendment has an overriding impact of the decision of the Supreme Court in the case of Gujarat Maritime Board, wherein it was held that development and maintenance of ports was an object of general public utility to be entitled for registration as a charitable institution. While the amendment is intended to exclude commercial entities from tax benefits available to charitable institutions, this amendment will affect Chambers of Commerce, trade associations, etc. as they collect fee for their services. The concept of ‘mutuality’ may however apply to such chambers, associations, etc.
non profit india 2014
As such, the organizations carrying on activities in the nature of trade, commerce, business or any service in relation thereto for a consideration/fee will not be classified as charitable organizations as such activities are proposed to be specifically excluded from the definition of ‘charitable purpose’.
The amendment has an overriding impact of the decision of the Supreme Court in the case of Gujarat Maritime Board, wherein it was held that development and maintenance of ports was an object of general public utility to be entitled for registration as a charitable institution. While the amendment is intended to exclude commercial entities from tax benefits available to charitable institutions, this amendment will affect Chambers of Commerce, trade associations, etc. as they collect fee for their services. The concept of ‘mutuality’ may however apply to such chambers, associations, etc.
Related listings
-
SITA PANCHAWATI SEWA SANGATHANUnique Id of VO/NGO SK/2017/0179687 Registration Details Registered With Any Other Type of NGO Other Registered Entities (Non-Government) Registration No 020/CH/SJE Copy of Registration Certificate Available Copy of Pan Card Available Act name Juveni...
-
Samajik Vikas Anusandhan Evam Parivartansheel SocietyUnique Id of VO/NGO UA/2020/0258382 Registration Details Registered With Registrar of Societies Type of NGO Registered Societies (Non-Government) Registration No UK06008052020003831 Copy of Registration Certificate Available Copy of Pan Card Availabl...
-
SANT DEEPAK EDUCATIONAL And CHARITABLE TRUST Contact Number & Address DetailsUnique Id of VO/NGO HR/2021/0281152 Registration Details Registered With Sub-Registrar Type of NGO Trust (Non-Government) Registration No 4825 Copy of Registration Certificate Available Copy of Pan Card Available Act name INCOME TAX ACT, 1961 City of...
-
SAMARPIT JAN KALYAN FOUNDATION Contact Number & Address DetailsUnique Id of VO/NGO HR/2022/0306620 Registration Details Registered With Registrar of Companies Type of NGO Private Sector Companies (Sec 8/25) Registration No U85300HR2022NPL100696 Copy of Registration Certificate Available Copy of Pan Card Availabl...
-
Salto Technologies Private Limited Contact Number & Address DetailsUnique Id of VO/NGO HR/2017/0177224 Registration Details Registered With Registrar of Companies Type of NGO Other Registered Entities (Non-Government) Registration No U74900HR2012PTC047414 Copy of Registration Certificate Available Copy of Pan Card A...
-
SAFE India Foundation Contact Number &Address DetailsUnique Id of VO/NGO HR/2021/0284612 Registration Details Registered With Sub-Registrar Type of NGO Trust (Non-Government) Registration No 2879, 4293 Copy of Registration Certificate Available Copy of Pan Card Available Act name Indian Trust Act, 1882...
Feedback / Rewiews
Leave your comment (spam and offensive messages will be removed)