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How is an NGO, a Trust and a Foundation Different?

From a legal standpoint, there is hardly any difference. An NGO or a Foundation cannot be registered. The legal viewpoint is that an NGO has one of three entities; its either a Public Trust or a Society or a not-for-profit organization or foundation. Under the Income Tax Act, all 3 entities are tax-exempt entities.Both trust and society alike are two types of a non-profit or non-government organization in India. Therefore if anyone intends on doing social work and for this purpose needs a legal entity, then either a trust or a society can be registered. One can also register a company under section 25 but in most cases, a registered is a norm or society for benevolent work.Trust is a comparatively simpler entity and can be easily registered and operated. Such organizations are fundamentally rooted in trust. Donations are purely based on trust that the donated funds would be fully utilized to serve the purpose mentioned in one’s trust deed. Trustees do not owe any explanation to anyone other than the Charity Commissioner and the applicable laws. Any tax breaks u/s 80g and 12a can be revoked if trustees do not abide by the rules, laws, and regulations of the Income Tax department. Analyzing NGO Registration people seem to think that even with lack of funds if NGO registration is done then their goals and objectives can be attained. Truth is as quickly as some NGOs are being registered they are also winding up quickly or even leaving it in the middle. If NGOs are registered with the intention or mindset of obtaining external grants and donations then such NGOs would not be sustainable in the long run. A company donating a chunk of funds to charity on a regular basis, then in such cases an NGO can be registered with enhanced sustainability planning.  In India, there are many registered NGOs only on paper and only about a little over half of NGOs are actually working for the betterment of society. NGOs can be formed in no time at all. However, when project funds from local government schemes or contributions from foreign countries are on hold indefinitely then the entire NGO comes to a screeching halt. Rather than looking for easier options for forming an NGO, for NGO registration its imperative to analyze the actual requirement and the strength to form, manage and maintain such NGO is far more important.Call 7604047601 for consultation with a registered expert Trust and Society NGO lawyers on Vidhikarya.

Posted By

Avik Chakravorty

1 month ago

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Why is RTI Amendment Bill So Controversial?

Although the Lok Sabha has passed and ratified The Right to Information Amendment Bill 2019 the Opposition is dead against it. Invectives like ‘dangerous’ and ‘dark day for democracy’ have been hurled against the bill. Changes have been suggested in regard to the terms and conditions of appointment of information commissioners at the center and state levels. The three provisions of the RTI amendment bill have been challenged by the members of Opposition in Parliament and by protesters in the field.Nonetheless, prior to going forward, the basic things that the RTI Act of 2005 does is based on the existing law which says that the public authorities are required to disclose on·        their organization, functions, and structure·        rights and duties of its officers and employees·        financial dataIf the public authorities do not provide the required information of their own volition, then, in that case, its citizen’s right to demand it from them based on the RTI Act. "Public authorities" refer to ministers and government servants among others.The head of the central information commission is the chief information commissioner and other information commissioners appointed by none other than the President representing the Central Government for a fixed term of five years with the salary of the chief election commissioner’s, as well as the election commissioner's salary respectively. The intent and purpose of this initiative were granting autonomous powers to the central information commission as well as provide protection from government surveillance. The amendments ` ` ` `The RTI amendment bill of 2019, excludes the five years tenure of the chief information commissioners and the information commissioners. The payouts on account of salary have been revised. Separate notifications will be sent by the government to both. Politically, what this means is that the government can and will pose a threat or entice the chief information commissioner and information commissioners with random removal or extension and curtailment or increase in salary depending upon their suitability for the ruling dispensation.Call 7604047601 for consultation with a registered expert right to information lawyer on Vidhikarya.

Posted By

Avik Chakravorty

1 month ago

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Consult Top Government Contracts Lawyers in India

Kunwar  Chandresh

Kunwar Chandresh

Advocate & Arbitration counsel, Ex-IES, Executive Engineer
Exp
South Delhi , Delhi

Specialization

  • Government Contracts
  • Commercial
  • Arbitration and Mediation
  • Contracts and Agreements
  • International Laws
Kunwar Chandresh helps client in Contract Management, Dispute Avoidance, Negotiation, Claim Preparation & Documentation for Arbitration and litigation in Courts of Delhi including NCLT and Commercial courts. He also appears before various courts mostly for civil matters. He is a member MCIArb (UK). View Full Profile
Total Answers Given : 1
Sanjeev  Srivastava

Sanjeev Srivastava

Lawyer
Exp
Delhi , Delhi

Specialization

  • Government Contracts
  • Contracts and Agreements
Practicing in Delhi Ghaziabad & Noida CIVIL AND CORPORATE , RERA, DRT, PROPERTY, ARBITRATION, NCLT, DRT, SUPREME COURT, CHEQUE BOUNCE, FAMILY -MATRIMONIAL View Full Profile
HARISH  KAUSHIK

HARISH KAUSHIK

Advocate
Exp
Central Delhi , Delhi

Specialization

  • Government Contracts
  • Civil
  • Criminal
  • Cheque Bounce
  • Domestic Violence
Advocate Harish Kaushik has been practicing and handling cases independently with a result oriented approach, both professionally and ethically and has now acquired over 8 years of professional experience in providing legal consultancy and advisory services. View Full Profile
Hari Bhawan  Pandey

Hari Bhawan Pandey

Lawyer
Exp
Allahabad , Uttar Pradesh

Specialization

  • Government Contracts
  • Civil
  • Debt Collection
  • Documentation
  • Industrial Laws
I am practising in Allahabad High Court Allahabad since 2002 the date of Enrollment in Bar Council of Uttar Pradesh. I am giving my best service in CRIMINAL and Service Matters including Central Administrative Tribunals Allahabad. View Full Profile
A.G.SYAM  KUMAR

A.G.SYAM KUMAR

Advocate
Exp
Thiruvananthapuram , Kerala

Specialization

  • Government Contracts
  • Advertising
  • Maternity
  • Sale
  • Software License
 Poonam Manoj Sapate

Poonam Manoj Sapate

ADVOCATE
Exp
Mumbai City , Maharashtra

Specialization

  • Government Contracts
  • Divorce
  • Civil
  • Criminal
  • Domestic Violence
HI, THIS IS ADV POONAM SAPATE I HAVE GREAT EXPERIENCE OF 2 YEARS View Full Profile
Total Answers Given : 40
Neha  Roy Choudhury

Neha Roy Choudhury

Advocate
Exp
Allahabad , Uttar Pradesh

Specialization

  • Government Contracts
  • Employment and Labour
  • Cheque Bounce
  • Advertising
  • Arbitration And Mediation
I am practicing since 2015. I am associate lawyer of Mr. Ashok Khare. i am an independent lawyer as well , and i do miscellaneous matters. View Full Profile
Total Answers Given : 1
Karnish  Gupta

Karnish Gupta

PARTNER
Exp
Ludhiana , Punjab

Specialization

  • Government Contracts
  • Criminal
  • Administrative Law
  • Adoption
  • Animal Laws
I AM DRIVEN BY MY DESIRE FOR SUCCESS AND THAT I WORK IN HAND WITH THE CLIENT AS THE CLIENT IS ALWAYS IN TRACK WITH THE CASE I AM A WORKAHOLIC BY NATURE AND STOP AT NOTHING View Full Profile
Nisha  C

Nisha C

ADVOCATE
Exp
Chennai , Tamil Nadu

Specialization

  • Government Contracts
  • Adoption
  • Advertising
  • Documentation
Associated with a SeniorK.S.Jeyaganeshan who has 21years of experience in the bar 2yrs Assisting him in various civil,consumer,corporate and government matter worked as an All Indian HR in an MNC company for more than 14 years practicing before the High court ,Tribunals ,city and all other court View Full Profile
Sunil  Jain

Sunil Jain

Lawyer
Exp
Ghaziabad , Uttar Pradesh

Specialization

  • Government Contracts
  • Criminal
  • Bankruptcy And Debt
  • Contracts And Agreements
  • Customs, Excise
I am a criminal lawyer by profession based in Ghaziabad with appearance before all Courts and Tribunals in Delhi / NCR including Allahabad High Court and adjoining Districts of Western Uttar Pradesh like Meerut Moradabad Bulandshahr Muzzafarnagar Hapur Noida. View Full Profile
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  • What are Government Contract?
  • Which laws govern Government Contract?
  • What areas are covered by the Government Contract?

Vidhikarya will help you find a most suitable lawyer, for you in your city, who will be able to answer all your Government Contract related queries and also guide you on how to resolve this matter with ease.

About the Government Contract


The Government has never been considered as an ‘honest man’. In England, this principle was duly accepted and it was observed that for the protection of the rule of law, the Crown must be subjected to reasonable amounts of legal liabilities.

Contractual liability of the Union of India and States is perceived by the Constitution itself. Article 298 explicitly gives that the executive power of the Union and of each State should reach out to the carrying on of any exchange or business and the obtaining, holding and transfer of property and the making of agreements for any reason.

There are no special laws for governing Government contracts.

What are the applicable laws to Government Contract?


Indian Contract Act, 1872
Since, there are no direct laws, and Government Contract being contractual relationships are governed by the said act. As per the said act, an agreement which is enforceable in law is a contract.

The General Clauses Act, 1897
The said act applies to documents which means to include any matter written, expressed or described upon any substance by means of letters, figures or marks, or by more than one of those means which is intended to be used, or which may be used, for the purpose or recording that matter.

Some important facts and cases under Government Contract law


In the case of State of Bihar v Majeed[5], the Hon'ble Supreme court held that;

"It may be noted that like other contracts, a Government Contract is also governed by the Indian Contract Act, yet it is distinct a thing apart. In addition to the requirements of the Indian Contract Act such as offer, acceptance and consideration, a Government Contract has to comply with the provisions of Article 299. Thus, subject to the formalities prescribed by Article 299 the contractual liability of the Central or State Government is same as that of any individual under the ordinary law of contract."

Supreme Court in the case of State of Bihar v. Majeed observed that a Government Contract is essentially like other Contracts hence it does come under the purview of the Indian Contract Act. However, in addition to having said that, it was also duly noted that a Government Contract is of a special nature hence it has to take into considerations not only the provisions of the Indian Contract Act but also the Constitution of India through Article 299.

It was held by the Hon'ble Supreme Court in the case of K.P.Chowdhary v State of Madhya Pradesh that, "In view of the provisions of Article 299(1) there is no scope for any implied contract. Thus, no contract can be implied under this Article.if the contract between the Government and a person is not incompliance with Article 299(1), it would be no contract at all and would not be enforceable as a contract either by the Government or by the person."

Another distinct feature about Government Contracts is the non-recognition of implied Contracts. Supreme Court in the case of K.P. Chowdhary v. State of Madhva Pradesh observed that implied Contracts enjoy no place under Article 299(1). Hence, no contract between the Government and a person would be in compliance as per the provisions of Article 299 if the concerned contract would be an implied contract, and an implied Government contract wouldn’t be a valid contract hence would not enjoy legal enforceability.

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