Skip to main content

Good news for Gujarat NGOs: Government issues GR waiving 2% administrative charge on foreign contributions

By Pankti Jog*
At a time when the Government of India is showing signs of uneasiness to foreign contributions (FCs) to non-government organizations (NGOs), in an interesting development, the Gujarat government has moved in just the opposite direction. 
The state government has come up with amended Bombay Public Trust Act rules, exempting NGOs and charitable trusts, receiving FCs, from paying two per cent levy on donations, or Rs 50,000 per year, whichever was higher.
The “good news” for registered trusts and societies in Gujarat has made NGOs, otherwise known to be pretty critical of government, quite happy. Gujarat is the only state till now, where donations to NGOs invited a two per cent levy for so-called administrative charges.
Albeit small, most of the NGOs were unable to reimburse the amount which the state government took away from the respective donor agencies. To those that worked with shoestring budget, it was really a serious issue.
Taking away Rs 50,000 each year to be paid for running the administration of the charity commissioner’s office each year would tell on their projects. Despite their unwillingness, NGOs across the state have been paying the amount for years.
As per a right to information (RTI) reply, over the last five years, the total amount collected thus by the state government came to Rs 58,54,96,323, averaging around Rs 9 crore per year. The RTI reply also revealed that the government had a surplus of Rs 123 crore in the year 2013-14 from the collection it has been making (see the table).
Several NGOs have for long been raising objections before state officials to the administrative charges from the FC grants it received for projects in Gujarat. They have, from time to time, posed three separate questions before the government.
The first question was about the quality of the services provided to the NGO sector as against the charges that were levied on them. In several cases, the registration of change of trustees, or change in the property holding, has been pending for about a decade years.
Second one was, if the government could regulate companies through the Registrar of Companies and other bodies like the labour commissioner’s office, the pollution control board, and so on, without charging any amount as administrative expense, what was the rationale behind charging NGOs towards their regulation cost?
And finally, NGOs play a “key role” in the development of communities, which is actually the primary responsibility of the government. Instead of recognizing this role, the NGOs in Gujarat were being penalized.
Recently, a public interest litigation (PIL) was filed in the Gujarat High Court seeking a stay on the administrative charges, as enough surplus amount had already been collected by the government, so much so that the charity commissioner’s office could be run from the interest of the fixed deposit of the entire amount.
As the PIL was still under hearing stage, the Gujarat government issued the notification giving exemption from administrative charges on grants and donations under FCRA, giving relief to over 1,500 NGOs of Gujarat.
---
*Mahiti Adhikar Gujarat Pahel, Gujarat. Click HERE to download new rules

Comments

TRENDING

Loktantra Bachao Abhiyan raises concerns over Jharkhand Adivasis' plight in Assam, BJP policies

By Our Representative  The Loktantra Bachao Abhiyan (Save Democracy Campaign) has issued a pressing call to protect Adivasi rights in Jharkhand, highlighting serious concerns over the treatment of Jharkhandi Adivasis in Assam. During a press conference in Ranchi on November 9, representatives from Assam, Chhattisgarh, and Madhya Pradesh criticized the current approach of BJP-led governments in these states, arguing it has exacerbated Adivasi struggles for rights, land, and cultural preservation.

Promoting love or instilling hate and fear: Why is RSS seeking a meeting with Rahul Gandhi?

By Ram Puniyani*  India's anti-colonial struggle was marked by a diverse range of social movements, one of the most significant being Hindu-Muslim unity and the emergence of a unified Indian identity among people of all religions. The nationalist, anti-colonial movement championed this unity, best embodied by Mahatma Gandhi, who ultimately gave his life for this cause. Gandhi once wrote, “The union that we want is not a patched-up thing but a union of hearts... Swaraj (self-rule) for India must be an impossible dream without an indissoluble union between the Hindus and Muslims of India. It must not be a mere truce... It must be a partnership between equals, each respecting the religion of the other.”

Right-arm fast bowler who helped West Indies shape arguably greatest Test team in cricket history

By Harsh Thakor*  Malcolm Marshall redefined what it meant to be a right-arm fast bowler, challenging the traditional laws of biomechanics with his unique skill. As we remember his 25th death anniversary on November 4th, we reflect on the legacy he left behind after his untimely death from colon cancer. For a significant part of his career, Marshall was considered one of the fastest and most formidable bowlers in the world, helping to shape the West Indies into arguably the greatest Test team in cricket history.

Andhra team joins Gandhians to protest against 'bulldozer action' in Varanasi

By Rosamma Thomas*  November 1 marked the 52nd day of the 100-day relay fast at the satyagraha site of Rajghat in Varanasi, seeking the restoration of the 12 acres of land to the Sarva Seva Sangh, the Gandhian organization that was evicted from the banks of the river. Twelve buildings were demolished as the site was abruptly taken over by the government after “bulldozer” action in August 2023, even as the matter was pending in court.  

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

A Hindu alternative to Valentine's Day? 'Shiv-Parvati was first love marriage in Universe'

By Rajiv Shah  The other day, I was searching on Google a quote on Maha Shivratri which I wanted to send to someone, a confirmed Shiv Bhakt, quite close to me -- with an underlying message to act positively instead of being negative. On top of the search, I chanced upon an article in, imagine!, a Nashik Corporation site which offered me something very unusual. 

Will Left victory in Sri Lanka deliver economic sovereignty plan, go beyond 'tired' IMF agenda?

By Atul Chandra, Vijay Prashad*  On September 22, 2024, the Sri Lankan election authority announced that Anura Kumara Dissanayake of the Janatha Vimukthi Peramuna (JVP)-led National People’s Power (NPP) alliance won the presidential election. Dissanayake, who has been the leader of the left-wing JVP since 2014, defeated 37 other candidates, including the incumbent president Ranil Wickremesinghe of the United National Party (UNP) and his closest challenger Sajith Premadasa of the Samagi Jana Balawegaya. 

Will Bangladesh go Egypt way, where military ruler is in power for a decade?

By Vijay Prashad*  The day after former Bangladeshi Prime Minister Sheikh Hasina left Dhaka, I was on the phone with a friend who had spent some time on the streets that day. He told me about the atmosphere in Dhaka, how people with little previous political experience had joined in the large protests alongside the students—who seemed to be leading the agitation. I asked him about the political infrastructure of the students and about their political orientation. He said that the protests seemed well-organized and that the students had escalated their demands from an end to certain quotas for government jobs to an end to the government of Sheikh Hasina. Even hours before she left the country, it did not seem that this would be the outcome.

A Marxist intellectual who dwelt into complex areas of the Indian socio-political landscape

By Harsh Thakor*  Professor Manoranjan Mohanty has been a dedicated advocate for human rights over five decades. His work as a scholar and activist has supported revolutionary democratic movements, navigating complex areas of the Indian socio-political landscape. His balanced, non-partisan approach to human rights and social justice has made his books essential resources for advocates of democracy.

Tributes paid to pioneer of Naxalism in Punjab, who 'dodged' police for 60 yrs

By Harsh Thakor*  Jagjit Singh Sohal, known as Comrade Sharma, a pioneer of Naxalism in Punjab, passed away on October 20 at the age of 96. Committed to the Naxalite cause and a prominent Maoist leader, Sohal, who succeeded Charu Majumdar, played hide and seek with the police for almost six decades. He was cremated in Patiala.