Before we discuss GPU under NGOs, let us first understand in simple terms what General Public Utility is?
So, here we are 'Utility service is a service that provides certain benefits to the public. These benefits are related to the daily necessities of the public. The Utilities mentioned above can be privately or publicly owned, and no money is included in dealing with General Public Utility.
NGOs have proved vital importance in public services by providing 3F facilities known as Food, Fodder, and Fabrics. This means NGOs are a big helping hand in providing public vital utility services of food, home, clothes, education, medical relief, security, and the list never ends.
NGOs The Charitable Organisations To provide Utility Services.
Now, it's time to be a little specific about general public utility. An NGO doesn't have to provide services only to the poor. No, it should not be beneficial to the poor section of society. Yes, it is a prevalent notion that NGOs help the poor only. But it is not so as, according to the definition, the benefits of NGO services or Utility Services should be directed to a section of society or public, but it is mentioned nowhere that the section should be or would be of the poor. Again attention should be paid to the words like 'a section of public', which also means that a utility service provider organization or an NGO doesn't need to provide the services to the whole mankind of state or nation.
In short, a section of the public which is having a common quality, the section which is specific and specialized on some common ground or predetermined standards, is to be benefited by General Public Utility Services.
These Are Some Purposes Of General Public Utility.
The chambers of industry and commerce, registered societies, federations, and other trade associations are working to promote commerce, trade, and industry. Such organizations are instituted by General Public Utility.
One of the most important purposes is that all institutions should be free from any profit activity. There should not be any profit motive behind the establishments. Such institutions can register for the following purposes.
For agricultural development and promotion of agriculture and its importance.
To promote general education and technical education to education which reduce unemployment and set up model industries in villages.
For the warfare for SCs, the scheduled caste and STs the scheduled tribes To improve their underprivileged condition by providing them needful.
Road safety is very necessary, and there are many organizations to promote awareness about traffic rules and the importance of road safety.
Sometimes it is seen that the government ignores the pathetic condition of the police force. However, it is not done intentionally. Some non-profit organizations or NGOs are there to take a stand about it.
To promote cultural activities like dance, art, literature, music, fine arts, etc. The institution can be established.
For sustaining natural beauty and maintaining botanical gardens, literary and cultural activities. There can be developing programs, and for that, the foundations can be established.
Utilizing knowledge and adding more knowledge to the already possessed knowledge is very important. Many research organizations can be established for research purposes.
In a country like India, the development of the villages is the development of the nation. There can be established certain village industries like cotton industries and craftsmanship can be enhanced, and the reaching of unemployed persons are some of the activities or services provided by General Public Utility.
There is a saying that ' where there is a will, there's the way' public utility services are endless as there are some institutions. They own an auditorium, Dharamshala's, gaushalas, memorial halls, and sanatoriums, and they are used publicly or given on very low rent. We have seen such places where people who cannot afford the five-star hotels for the marriage of their daughters also take these kinds of Dharamshala with essential facilities.
Though there is a government undertaking such as The Archeological Survey Of India(ASI) still finds some historical places are neglected and almost ruined. Some institutions are there to foster such historically and culturally important monuments on their own without any profit. They even extend to maintaining or renovating some of the old libraries or museums.
To maintain the sporting spirit, some institutions are there to promote such games as cricket, hockey, and football and to give shape to the career of youth and make them self-defended.
Objects Of General Public Utility.
Under section 2(15) of the income tax act, if any activity of General Public Utility is found indulged in money or profits making or fee. That trade activity would be considered as a charitable purpose. To be free from money and profit-making is the core value of General Public Utility.
Yes, these establishments can generate money. What if the depiction of the institution is like trade, commerce, or any year money-generating or revenue-generating? Then there is a certain percentage of income generated that is regarded as fine or acceptable. No more than 15% of total revenue is accepted.
A Short Description Of Section 2(15) Of Income Tax Act.
This act defines the charitable purpose to include education, medical relief, relief of the poor, and advancement of any other object of Public Utility.
It has seven branches, and six out of them allow 100% off from business activities and are incidental to Charitable objectives.
These branches may seem a bit restrictive, but that is not true. Even these are dear to the government. A clear and correct interpretation is needed to understand the broad aspect of these six branches. But here, we will provide you only a short description of the Income-tax Act and the names of the six branches.
The Name Of Six Branches Of Section 2(15) Of Income Tax Act.
- Relief of the poor
- Education
- Yoga
- Medical Relief
- Preservation Of The Environment
- Preservation or conservation of monuments, places or objects of artistic or historical, or cultural importance.
NGOs are the face of General Public Utility. Though many institutions or establishments provide public utility services. But they are never out of the category of NGOs.
Whatever type of establishment or institution you may have or whatever your services are, it is to remember that public utility services are non-profit services. They are provided for social welfare, and by social welfare, they mean a certain specified and specialized category of society, not the poor. However, they are not supposed to serve the whole nation. It is up to the warfare organization to what extent they can provide their moneyless and selfless social services.
