02 July 2012
I have an NGO. I want to do financing through tht NGO. I mean giving loan to people at low interest rate under my NGO. Is it possible? Thanks Swastik
02 July 2012
If your NGO is a sec 25 company under Companies Act, then the answer is NO. You can not. But if it is a proprietory NGO, you may do so subject to proper liscence of LENDING money.
03 July 2012
The society has to do the business with its members ... that is the punch line. Ifit does business with non members, obviously it will become TAXABLE. ( The assumption is that the business activity is included in the object clause.)
You can definitely do the business because so far as I understand your ultimate goal is to serve poor and needy people who otherwise extra ordinary Interest to Lending Mafias or Shahukars .
In fact in Gujarat respected Ilaben Bhatt who established institution SEVA to help ladies who were selling Vegitables etc and Paying 1800% int per annum.
I dont have any idea of How to obtain a Permission -Registration In Assam. So I suggest to contact some Local Advocate in this matter.
Meanwhile if I will find any additional material in the matter I will surely let you know.Please send your Email Id through Private Message.
CAclubindia
