assignment on business oraganization

ASSIGNMENT
ON
BUSINESS ORGANISATION


By
Shashi Srivastava



TABLE OF CONTENTS :

· PARTNERSHIP FIRMS

· JOINT VENTURE

· NGO

· GOVERNMENT OF INDIA

















PARTENERSHIP FIRMS

Introduction

A partnership is a business entity having two or more owners. Earnings are distributed according to the partnership agreement and are treated as personal income for tax purposes. Thus, like the sole proprietorship, the partnership is simply aconduit for directing income to its partners.Partnership has aunique liability situation. Each partner is jointly and severally liable. Thus, a damaged party can pursue a
single partner or any number of partners- and that claim may or may not be proportional to the invested capital of the partners or the distribution of the earnings. This means that if the one partner did something to damage acustomer, that customer could sue all the partners even though other partner played no part in the problem.
Organizing apartnership is not as effortless as with asole proprietorship. The partners must determine, and should set down in writing, their agreement on anumber of issues:The amount and nature of their respective capital contributions (e.g., one partner might contribute cash, another a patent, and a third property and cash)
How the business’s profits and losses will be allocated
Salaries and draws against profits
Management responsibilities
The consequences of withdrawal, retirement, disability, or the death of a partner
The means of dissolution and liquidation of the partnership
Advantages of a Partnership

Partnerships have many of the same advantages of the sole proprietorship, along with others:

· Except for the time and the legal cost of crafting a partnership agreement, it is easy to establish.

· Because there is more than one owner, the entity has more than one pool of capital to tap in financing the business and its operations.

· Profits from the business flow directly to the partners personal tax returns; they are not subject to a second level of taxation.

· The entity can draw on the judgment and management of more than one person. In the best cases, the partners will have complement
Disadvantages of a Partnership


As mentioned earlier, partners are jointly and severally liable for the actions of the other partners. Thus, one partner can put other partners at risk without their knowledge or consent. Other disadvantages include the following:

· Profits must be shared among the partners.

· With two or more partners being privy to decisions, decision making may de slower and more difficult than in a sole proprietorship. Disputes can tie the partnership in knots.

· As with a sole proprietorship, the cost of some employee benefits may not be deductible from income taxation.

Depending on the partnership agreement, the partnership may have a limited life. Unless otherwise specified, it will end upon the withdrawal or death of any partner.


























JOINT VENTURE

Joint Venture companies are the most preferred form of corporate entities for Doing Business in India. There are no separate laws for joint ventures in India. The companies incorporated in India, even with up to 100% foreign equity, are treated the same as domestic companies. A Joint Venture may be any of the business entities available in India.
A typical Joint Venture is where:
Two parties, (individuals or companies), incorporate a company in India. Business of one party is transferred to the company and as consideration for such transfer, shares are issued by the company and subscribed by that party. The other party subscribes for the shares in cash.
The above two parties subscribe to the shares of the joint venture company in agreed proportion, in cash, and start a new business.
Promoter shareholder of an existing Indian company and a third party, who/which may be individual/company, one of them non-resident or both residents, collaborate to jointly carry on the business of that company and its shares are taken by the said third party through payment in cash.
Some practical aspects of formation of joint venture companies in India and the prerequisites which the parties should take into account are enumerated herein after.
Foreign companies are also free to open branch offices in India. However, a branch of a foreign company attracts a higher rate of tax than a subsidiary or a joint venture company. The liability of the parent company is also greater in case of a branch office.
Government Approvals for Joint Ventures ...
All the joint ventures in India require governmental approvals, if a foreign partner or an NRI or PIO partner is involved. The approval can be obtained from either from RBI or FIPB. In case, a joint venture is covered under automatic route, then the approval of Reserve bank of India is required. In other special cases, not covered under the automatic route, a special approval of FIPB is required.
The Government has outlined 37 high priority areas covering most of the industrial sectors. Investment proposals involving up to 74% foreign equity in these areas receive automatic approval within two weeks. An application to the Reserve Bank of India is required. Please see Foreign Investment in India - Sector wise Guide for sectorwise guidelines under automatic route. Besides the 37 high priority areas, automatic approval is available for 74% foreign equity holdings setting up international trading companies engaged primarily in export activities.
Approval of foreign equity is not limited to 74% and to high priority industries. Greater than 74% of equity and areas outside the high priority list are open to investment, but government approval is required. For these greater equity investments or for areas of investment outside of high priority an application in the form FC (SIA) has to be filed with the Secretariat for Industrial Approvals. A response is given within 6 weeks. Full foreign ownership (100% equity) is readily allowed in power generation, coal washeries, electronics, Export Oriented Unit (EOU) or a unit in one of the Export Processing Zones ("EPZ's").
For major investment proposals or for those that do not fit within the existing policy parameters, there is the high-powered Foreign Investment Promotion Board ("FIPB"). The FIPB is located in the office of the Prime Minister and can provide single-window clearance to proposals in their totality without being restricted by any predetermined parameters.
Foreign investment is also welcomed in many of infrastructure areas such as power, steel, coal washeries, luxury railways, and telecommunications. The entire hydrocarbon sector, including exploration, producing, refining and marketing of petroleum products has now been opened to foreign participation. The Government had recently allowed foreign investment up to 51% in mining for commercial purposes and up to 49% in telecommunication sector. The government is also examining a proposal to do away with the stipulation that foreign equity should cover the foreign exchange needs for import of capital goods. In view of the country's improved balance of payments position, this requirement may be eliminated.
How to Enter into a Joint Venture Agreement?
Selection of a good local partner is the key to the success of any joint venture. Once a partner is selected generally a Memorandum of Understanding or a Letter of Intent is signed by the parties highlighting the basis of the future joint venture agreement.
A Memorandum of Understanding and a Joint Venture Agreement must be signed after consulting lawyers well versed in international laws and multi-jurisdictional laws and procedures.
Before signing the joint venture agreement, the terms should be thoroughly discussed and negotiated to avoid any misunderstanding at a later stage. Negotiations require an understanding of the cultural and legal background of the parties.
Before signing a Joint Venture Agreement the following must be properly addressed:
Dispute resolution agreements
Applicable law.
Force Majeure
Holding shares
Transfer of shares
Board of Directors
General meeting.
CEO/MD
Management Committee
Important decisions with consent of partners
Dividend policy
Funding
Access.
Change of control
Non-Compete
Confidentiality
Indemnity
Assignment.
Break of deadlock
Termination.
The Joint Venture agreement should be subject to obtaining all necessary governmental approvals and licenses within specified period.
Drafting International Joint Venture Agreements
Madaan & Co. has helped US companies & Foreign companies in setting up their Joint Venture operations in India and other countries. Business Joint Ventures are more likely to be beneficial if Joint Venture Entry Strategies are carefully formulated. Negotiating Joint Ventures properly is very important for a win-win Joint Venture. Proper drafting of Joint Venture Agreements are very important for the success of any joint venture.

NGO
organizations, such as the Center for the Study of Global Governance.[19] The term “cit
Non-governmental organization (NGO)
is a term that has become widely accepted as referring to a legally constituted, non-governmental organization created by natural or legal persons with no participation or representation of any government. In the cases in which NGOs are funded totally or partially by governments, the NGO maintains its non-governmental status and excludes government representatives from membership in the organization. Unlike the term intergovernmental organization, "non-governmental organization" is a term in general use but is not a legal definition. In many jurisdictions these types of organization are defined as "civil society organizations" or referred to by other names.
The number of internationally operating NGOs is estimated at 40,000.[1] National numbers are even higher: Russia has 277,000 NGOs.[2] India is estimated to have between 1 million and 2 million NGOs.[3]
History
National NGOs go back to antiquity. International non-governmental organizations have a history dating back to at least 1839.[4] Rotary, later Rotary International, was founded in 1904. It has been estimated that by 1914 there were 1083 NGOs.[5] International NGOs were important in the anti-slavery movement and the movement for women's suffrage, and reached a peak at the time of the World Disarmament Conference.[6] However, the phrase "non-governmental organization" only came into popular use with the establishment of the United Nations Organization in 1945 with provisions in Article 71 of Chapter 10 of the United Nations Charter[7] for a consultative role for organizations which are neither governments nor member states—see Consultative Status. The definition of "international NGO" (INGO) is first given in resolution 288 (X) of ECOSOC on February 27, 1950: it is defined as "any international organization that is not founded by an international treaty". The vital role of NGOs and other "major groups" in sustainable development was recognized in Chapter 27[8] of Agenda 21, leading to intense arrangements for a consultative relationship between the United Nations and non-governmental organizations.[9]
Rapid development of the non-governmental sector occurred in western countries as a result of the processes of restructurization of the welfare state. Further globalization of that process occurred after the fall of the communist system and was an important part of the Washington consensus [10].
Globalization during the 20th century gave rise to the importance of NGOs. Many problems could not be solved within a nation. International treaties and international organizations such as the World Trade Organization were perceived as being too centred on the interests of capitalist enterprises. Some argued that in an attempt to counterbalance this trend, NGOs have developed to emphasize humanitarian issues, developmental aid and sustainable development. A prominent example of this is the World Social Forum which is a rival convention to the World Economic Forum held annually in January in Davos, Switzerland. The fifth World Social Forum in Porto Alegre, Brazil, in January 2005 was attended by representatives from more than 1,000 NGOs.[citation needed] Some have argued that in forums like these, NGOs take the place of what should belong to popular movements of the poor. Others argue that NGOs are often imperialist in nature, that they sometimes operate in a racialized manner in dominant countries, and that they fulfill a similar function to that of the clergy during the high colonial era. The philosopher Peter Hallward argues that they are an aristocratic form of politics. However, this philosophy would suggest that organizations of indigenous peoples are not represented, which is untrue.[11] Whatever the case, NGO transnational networking is now extensive.[12]
Types of NGOs
Apart from "NGO", often alternative terms are used as for example: independent sector, volunteer sector, civil society, grassroots organizations, transnational social movement organizations, private voluntary organizations, self-help organizations and non-state actors (NSA's).
Non-governmental organizations are a heterogeneous group. A long list of acronyms has developed around the term "NGO".
These include:
CSO, short for civil society organization;
DONGO: Donor Organized NGO;
ENGO: short for environmental NGO, such as Global 2000;
GONGOs are government-operated NGOs, which may have been set up by governments to look like NGOs in order to qualify for outside aid or promote the interests of the government in question;
INGO stands for international NGO; Education charter international is an international NGO
QUANGOs are quasi-autonomous non-governmental organizations, such as the International Organization for Standardization (ISO). (The ISO is actually not purely an NGO, since its membership is by nation, and each nation is represented by what the ISO Council determines to be the 'most broadly representative' standardization body of a nation. That body might itself be a nongovernmental organization; for example, the United States is represented in ISO by the American National Standards Institute, which is independent of the federal government. However, other countries can be represented by national governmental agencies; this is the trend in Europe.)
TANGO: short for technical assistance NGO;
GSO: Grassroots Support Organization
MANGO: short for market advocacy NGO
There are also numerous classifications of NGOs. The typology the World Bank uses divides them into Operational and Advocacy:[13]
The primary purpose of an operational NGO is the design and implementation of development-related projects. One frequently used categorization is the division into relief-oriented versus development-oriented organizations; they can also be classified according to whether they stress service delivery or participation; or whether they are religious or secular; and whether they are more public or private-oriented. Operational NGOs can be community-based, national or international.
The primary purpose of an Advocacy NGO is to defend or promote a specific cause. As opposed to operational project management, these organizations typically try to raise awareness, acceptance and knowledge by lobbying, press work and activist events.
USAID refers to NGOs as private voluntary organisations. However many scholars have argued that this definition is highly problematic as many NGOs are in fact state and corporate funded and managed projects with professional staff.[citation needed] Furthermore it has often been argued that USAID is in fact a key arm of American imperialism and that it sets up and supports NGOs in order to further imperial agendas.[14]
NGOs exist for a variety of reasons, usually to further the political or social goals of their members or funders. Examples include improving the state of the natural environment, encouraging the observance of human rights, improving the welfare of the disadvantaged, or representing a corporate agenda. However, there are a huge number of such organizations and their goals cover a broad range of political and philosophical positions. This can also easily be applied to private schools and athletic organizations.
Methods
NGOs vary in their methods. Some act primarily as lobbyists, while others primarily conduct programs and activities. For instance, an NGO such as Oxfam, concerned with poverty alleviation, might provide needy people with the equipment and skills to find food and clean drinking water, whereas an NGO like the FFDA helps through investigation and documentation of human rights violations and provides legal assistance to victims of human rights abuses. Others, such as Afghanistan Information Management Services, provide specialized technical products and services to support development activities implemented on the ground by other organizations.
Public relations
Non-governmental organizations need healthy relationships with the public to meet their goals. Foundations and charities use sophisticated public relations campaigns to raise funds and employ standard lobbying techniques with governments. Interest groups may be of political importance because of their ability to influence social and political outcomes.
Consulting
Project management
There is an increasing awareness that management techniques are crucial to project success in non-governmental organizations.[15] Generally, non-governmental organizations that are private have either a community or environmental focus. They address varieties of issues such as religion, emergency aid, or humanitarian affairs. They mobilize public support and voluntary contributions for aid; they often have strong links with community groups in developing countries, and they often work in areas where government-to-government aid is not possible. NGOs are accepted as a part of the international relations landscape, and while they influence national and multilateral policy-making, increasingly they are more directly involved in local action.
Staffing
Not all people working for non-governmental organizations are volunteers. The reasons people volunteer are not necessarily purely altruistic, and can provide immediate benefits for themselves as well as those they serve, including skills, experience, and contacts.
There is some dispute as to whether expatriates should be sent to developing countries. Frequently this type of personnel is employed to satisfy a donor who wants to see the supported project managed by someone from an industrialized country. However, the expertise these employees or volunteers may have can be counterbalanced by a number of factors: the cost of foreigners is typically higher, they have no grassroot connections in the country they are sent to, and local expertise is often undervalued.[13]
The NGO sector is an important employer in terms of numbers.[citation needed] For example, by the end of 1995, CONCERN worldwide, an international Northern NGO working against poverty, employed 174 expatriates and just over 5,000 national staff working in ten developing countries in Africa and Asia, and in Haiti.
Funding
Large NGOs may have annual budgets in the hundreds of millions or billions of dollars. For instance, the budget of the American Association of Retired Persons (AARP) was over US$540 million in 1999.[16] Funding such large budgets demands significant fundraising efforts on the part of most NGOs. Major sources of NGO funding include membership dues, the sale of goods and services, grants from international institutions or national governments, and private donations. Several EU-grants provide funds accessible to NGOs.
Even though the term "non-governmental organization" implies independence from governments, most NGOs depend heavily on governments for their funding[10]. A quarter of the US$162 million income in 1998 of the famine-relief organization Oxfam was donated by the British government and the EU. The Christian relief and development organization World Vision collected US$55 million worth of goods in 1998 from the American government. Nobel Prize winner Médecins Sans Frontières (MSF) (known in the USA as Doctors Without Borders) gets 46% of its income from government sources.[17]
Monitoring and control
In a March 2000 report on United Nations Reform priorities, former U.N. Secretary General Kofi Annan wrote in favor of international humanitarian intervention, arguing that the international community has a "right to protect" citizens of the world against ethnic cleansing, genocide, and crimes against humanity. On the heels of the report, the Canadian government launched the Responsibility to Protect R2PPDF (434 KiB) project, outlining the issue of humanitarian intervention. While the R2P doctrine has wide applications, among the more controversial has been the Canadian government's use of R2P to justify its intervention and support of the coup in Haiti.[citation needed]
Years after R2P, the World Federalist Movement, an organization which supports "the creation of democratic global structures accountable to the citizens of the world and call for the division of international authority among separate agencies", has launched Responsibility to Protect - Engaging Civil Society (R2PCS). A collaboration between the WFM and the Canadian government, this project aims to bring NGOs into lockstep with the principles outlined under the original R2P project.
The governments of the countries an NGO works or is registered in may require reporting or other monitoring and oversight. Funders generally require reporting and assessment, such information is not necessarily publicly available. There may also be associations and watchdog organizations that research and publish details on the actions of NGOs working in particular geographic or program areas.[citation needed]
In recent years, many large corporations have increased their corporate social responsibility departments in an attempt to preempt NGO campaigns against certain corporate practices. As the logic goes, if corporations work with NGOs, NGOs will not work against corporations.
In December 2007, The United States Department of Defense Assistant Secretary of Defense (Health Affairs) [1] established an International Health Division under Force Health Protection & Readiness [2]. Part of International Health's mission is to communicate with NGOs in areas of mutual interest. Department of Defense Directive 3000.05 [3], in 2005, requires DoD to regard stability-enhancing activities as a mission of importance equal to warfighting. In compliance with international law, DoD has necessarily built a capacity to improve essential services in areas of conflict such as Iraq, where the customary lead agencies (State Department and USAID) find it difficult to operate. Unlike the "co-option" strategy described for corporations, the OASD(HA) recognizes the neutrality of health as an essential service. International Health cultivates collaborative relationships with NGOs, albeit at arms-length, recognizing their traditional independence, expertise and honest broker status. While the goals of DoD and NGOs may seem incongruent, the DoD's emphasis on stability and security to reduce and prevent conflict suggests, on careful analysis, important mutual interests.
Legal status
The legal form of NGOs is diverse and depends upon homegrown variations in each country's laws and practices. However, four main family groups of NGOs can be found worldwide:[18]
Unincorporated and voluntary association
Trusts, charities and foundations
Companies not just for profit
Entities formed or registered under special NGO or nonprofit laws
NGOs are not subjects of international law, as states are. An exception is the International Committee of the Red Cross, which is subject to certain specific matters, mainly relating to the Geneva Convention.
The Council of Europe in Strasbourg drafted the European Convention on the Recognition of the Legal Personality of International Non-Governmental Organizations in 1986, which sets a common legal basis for the existence and work of NGOs in Europe. Article 11 of the European Convention on Human Rights protects the right to freedom of association, which is also a fundamental norm for NGOs.
Citizen organization
There is a growing movement within the “non”-profit and “non”-government sector to define itself in a more constructive, accurate way. Instead of being defined by “non” words, organizations are suggesting new terminology to describe the sector. The term “civil society organization” (CSO) has been used by a growing number of izen sector organization” (CSO) has also been advocated to describe the sector — as one of citizens, for citizens.This labels and positions the sector as its own entity, without relying on language used for the government or business sectors. However some have argued that this is not particularly helpful given that most NGOs are in fact funded by governments and business and that some NGOs are clearly hostile to independently organized people's organization.








Government of India

Introduction


Government OrganizationsGet detailed information on the leading government organisations in India under the directory on government organisations. Get online information related to various government organisations providing services in the field of education, infrastructure development,agriculture, scientific research. Also view websites of leading government organisations operating in India which is available under the online web guide on government organisations.
The Government of India, officially known as the Union Government and also known as the Central Government, was established by the Constitution of India, and is the governing authority of a union of 28 states and seven union territories, collectively called the Republic of India. It is seated in New Delhi, the capital of India.
The government comprises three interdependent branches: the executive, the legislative and the judiciary. The executive branch headed by the President, who is the Head of State and exercises his or her power through a Council of Ministers led by the Prime Minister. The Legislative branch or the Parliament consists of the lower house, the Lok Sabha, and the upper house, the Rajya Sabha, as well as the president. The Judicial branch has the Supreme Court at its apex, 21 High Courts, and numerous civil, criminal and family courts at the district level.
The basic civil and criminal laws governing the citizens of India are set down in major parliamentary legislation, such as the Civil Procedure Code, the Indian Penal Code, and the Criminal Procedure Code. The union and individual state governments consist of executive, legislative and judicial branches. The legal system as applicable to the federal and individual state governments is based on the English Common and Statutory Law. India accepts International Court of Justice jurisdiction with several reservations. By the 73rd and 74th amendments to the constitution, the Panchayat Raj system has been institutionalized for local governance.
Type of government
The Preamble lays down the type of government that India has adopted - Sovereign, Socialist, Secular, Democratic, Republic.
[edit] Sovereign
The word sovereign means supreme or independent nation. India is internally and externally sovereign - externally free from the control of any foreign power and internally, it has a free government which is directly elected by the people and makes laws that govern the people.
[edit] Socialist
The word socialist was added to the Preamble by the 42nd Amendment Act of 1976. It implies social and economic equality for all its citizens. There will be no discrimination on the basis of caste, colour, creed, sex, religion or language. Everybody will be given equal status and opportunities. The government will make efforts to reduce the concentration of wealth in a few hands, and provide a decent standard of living to all.
India has adopted a mixed economic model, and the government has framed many laws to achieve the goal of socialism, such as Abolition of Untouchability and Zamindari Act, Equal Wages Act and Child Labour Prohibition Act.
[edit] Secular
The word secular was inserted into the Preamble by the 42nd Amendment Act of 1976. It implies equality of all religions and religious tolerance. India does not have any official state religion. Every person has the right to preach, practice and propagate any religion of their own choice. The government does not favour or discriminate any religion. It treats all religions with equal respect. All citizens, irrespective of their religious beliefs are equal in the eyes of law. No religious instruction is imparted in government or government - aided schools.
[edit] Democratic
India is a free country; vote from any place, specific seats are given out for Scheduled social group and scheduled tribes (89%) in parliament called (reserved voters), in local body election a proportion of seats are given out for women candidates. There is also a proposal to give out 33% seats in all elections to woman candidates, at this moment there is no agreement how to apply it and which seats should be given out. The Election Commission of India is responsible for performing free and fair elections.
Republic
As opposed to a monarchy, in which the head of state is appointed on hereditary basis for a lifetime, or until he abdicates, a republic is a state in which the head of state is elected, directly or indirectly, for a fixed tenure. The President of India is elected by an electoral college for a term of five years.
Parliamentary government

Sansad Bhavan
India has a parliamentary system of government based largely on that of the United Kingdom (Westminster system).
The legislature is the Parliament. It is bicameral, consisting of two houses: the directly-elected 545-member Lok Sabha ("House of the People"), the lower house, and the 250-member indirectly-elected and appointed Rajya Sabha ("Council of States"), the upper house. The parliament enjoys parliamentary supremacy.
The executive is split between a mainly ceremonial head of state (the President of India). The President enjoys all constitutional powers, but exercises them only on the advice of the actual executive, the head of government (Prime Minister of India) and his or her Council of Ministers (the cabinet), which enjoy all real powers and make important policy decisions.
All the members of the Council of Ministers as well as the Prime Minister are members of Parliament. If they are not, they must be elected within a period of six months from the time they assume their respective office. The Prime Minister and the Council of Ministers are responsible to the Lok Sabha, individually as well as collectively.
Individual responsibility
Every individual minister is in charge of a specific ministry or ministries (or specific other portfolio). He is responsible for any act of failure in all the policies relating to his department. In case of any lapse, he himself is individually responsible to the Parliament. If a vote of no confidence is passed against the individual minister, he has to resign. Individual responsibility can amount to collective responsibility. Therefore, the Prime Minister, in order to save his government, can ask for the resignation of such a minister and the people have a say.
Collective responsibility
The Prime Minister and the Council of Ministers are jointly accountable to the Lok Sabha. If there is a policy failure or lapse on the part of the government, all the members of the council are jointly responsible. If a vote of no confidence is passed against the government, then all the ministers headed by the Prime Minister have to resign.
Judicial branch

Bombay High Court.
India's independent judicial system began under the British, and its concepts and procedures resemble those of Anglo-Saxon countries. The Supreme Court of India consists of a Chief Justice and 25 associate justices, all appointed by the President on the advice of the Chief Justice of India. In the 1960s, India moved away from using juries for most trials, finding them to be corrupt and ineffective, instead almost all trials are conducted by judges.
Unlike its US counterpart, the Indian justice system consists of a unitary system at both state and federal level. The judiciary consists of the Supreme Court of India, High Courts at the state level, and District and Session Courts at the district level.
National judiciary
Main article: Supreme Court of India
The Supreme Court of India has original, appellate and advisory jurisdiction. Its exclusive original jurisdiction extends to any dispute between the Government of India and one or more states, or between the Government of India and any state or states on one side and one or more states on the other, or between two or more states, if and insofar as the dispute involves any question (whether of law or of fact) on which the existence or extent of a legal right depends.
In addition, Article 32 of the Indian Constitution gives an extensive original jurisdiction to the Supreme Court in regard to enforcement of Fundamental Rights. It is empowered to issue directions, orders or writs, including writs in the nature of habeas corpus, mandamus, prohibition, quo warranto and certiorari to enforce them. The Supreme Court has been conferred with power to direct transfer of any civil or criminal case from one State High Court to another State High Court, or from a court subordinate to another State High Court.
Public Interest Litigation(PIL) : Although the proceedings in the Supreme Court arise out of the judgments or orders made by the Subordinate Courts, of late the Supreme Court has started entertaining matters in which interest of the public at large is involved, and the Court may be moved by any individual or group of persons either by filing a Writ Petition at the Filing Counter of the Court, or by addressing a letter to Hon'ble The Chief Justice of India highlighting the question of public importance for invoking this jurisdiction.
Such a concept is known as Public Interest Litigation, or PIL and several matters of public importance have become landmark cases. This concept is unique to the Supreme Court of India, and perhaps no other Court in the world has been exercising this extraordinary jurisdiction.
Corruption
The combination of corruption and politics plays a key role in governance.
The concept of tipping and working on commission is new to India. The country has experienced free markets since 1948, less than the average life span. Concepts like "premium" processing is new and is being slowly adopted to diminish corruption. At micro levels, these are called as "Tatkaal" schemes being introduced in government offices, meaning immediate processing, which directly deals with the common man. At macro levels these are called betterment charges that are levied on corporations that wish to invest in large projects. Starting in the early 1990s, privatization helped government to raise more taxes.[citation needed]
Occupations such as facilitator, negotiator, or agent, were never part of the Indian society. In business there was a seller and a buyer; and negotiation was considered the skill of the seller to influence the buyer.[citation needed]
Because it has freedom, the media has played an important role in unmasking corruption.[citation needed]
In 2009, nearly a quarter of the 543 elected members of parliament had been charged with crimes, including rape or murder.[1]
Inefficiency
Indian government is among the most bureaucratic in the world. The current government has concluded that most spending fails to reach its intended recipients.[2] Lant Pritchett calls India's public sector "one of the world's top ten biggest problems - of the order of AIDS and climate change".[2] The Economist article about Indian civil service (2008) said that Indian central government employs around 3 million people and states another 7 million, including "vast armies of paper-shuffling peons"[2]. The Economist states that "India has some of the hardest-working bureaucrats in the world, but its administration has an abysmal record of serving the public".[3]
Unannounced visits by government inspectors showed that 25% of public sector teachers and 40% of public sector medical workers could not be found at the workplace. Teacher absence rates ranged from 15% in Maharashtra to 71% in Bihar. Despite worse absence rates, public sector teachers enjoy salaries at least five times higher than private sector teachers. India's absence rates are among the worst in the world.[4][5][6][7]
Many experiments with computerization have failed due to corruption and other factors.[8][9] In 2008, Tanmoy Chakrabarty noted that "There are vested interests everywhere, politicians fear that they will lose control with e-government, and this is coming in the way of successful implementation of e-government projects in India. [...] Out of the 27 projects under the NEGP, only one (the MCA21 program) has been completed. There is tremendous gap between conceptualization and implementation".[9]
Spending priorities

The government subsidizes everything from gasoline to food.[10] Loss-making state-owned enterprises are supported by the government. Water is free and paid by the state.[10] Farmers are given electricity for free.[10] Overall, a 2005 article by International Herald Tribune stated that subsidies amounted to 14% of GDP.[10] As much as 39 percent of subsidized kerosene is stolen.[10] Moreover, these subsidies cause economic distortions.[10]
On the other hand, India spends relatively little on education, health, or infrastructure. Urgently needed infrastructure investment has been much lower than in China. According to the UNESCO, India has the lowest public expenditure on higher education per student in the world.[11]
Deficits
As per the CIA World Factbook, India ranks 30th in the world with respect to the Public Debt with a total of 56.40% of GDP compared to the United states which ranks 61st (2008 estimated).[12]
Finance
Taxation


Regional office of the State Bank of India (SBI), India's largest bank, in Mumbai. The government of India is the largest shareholder in SBI.
India has a three-tier tax structure, wherein the constitution empowers the union government to levy income tax, tax on capital transactions (wealth tax, inheritance tax), sales tax, service tax, customs and excise duties and the state governments to levy sales tax on intrastate sale of goods, tax on entertainment and professions, excise duties on manufacture of alcohol, stamp duties on transfer of property and collect land revenue (levy on land owned). The local governments are empowered by the state government to levy property tax and charge users for public utilities like water supply, sewage etc.[13][14] More than half of the revenues of the union and state governments come from taxes, of which half come from Indirect taxes. More than a quarter of the union government's tax revenues is shared with the state governments.[15]
The tax reforms, initiated in 1991, have sought to rationalise the tax structure and increase compliance by taking steps in the following directions:
Reducing the rates of individual and corporate income taxes, excises, customs and making it more progressive
Reducing exemptions and concessions
Simplification of laws and procedures
Introduction of permanent account number (PAN) to track monetary transactions
21 of the 29 states introduced value added tax (VAT) on April 1, 2005 to replace the complex and multiple sales tax system[14][16]
The non-tax revenues of the central government come from fiscal services, interest receipts, public sector dividends, etc., while the non-tax revenues of the States are grants from the central government, interest receipts, dividends and income from general, economic and social services.[17]
Inter-State share in the federal tax pool is decided by the recommendations of the Finance Commission to the President.
Total tax receipts of Centre & State amount to approximately 18% of national GDP. This compares to a figure of 37-45% in the OECD .
General budget
The Finance minister of India presents the annual union budget in the Parliament on the last working day of February. The budget has to be passed by the Lok Sabha before it can come into effect on April 1, the start of India's fiscal year. The Union budget is preceded by an economic survey which outlines the broad direction of the budget and the economic performance of the country for the outgoing financial year. This economic survey involves all the various NGOs, women organizations, business people, old people associations etc.The 2009 Union budget of India had a total estimated expenditure for 2009-10 was Rs.10,20,838 crore, of which Rs.6,95,689 crore was towards Non Plan and Rs.3,25,149 crore towards Plan expenditure. Total estimated revenue was Rs 6,19,842 crore, including revenue receipts of Rs 6,14,497 and capital receipts of Rs 5345 crores, excluding borrowings. The resulting fiscal deficit was Rs 4,00,996 crore while revenue deficit was Rs 2,82,735 crore.The gross tax receipts were budgeted at Rs.6,41,079 crore and non tax revenue receipts at Rs.1,40,279
India's non-development revenue expenditure has increased nearly fivefold in 2003–04 since 1990–91 and more than tenfold since 1985–1986. Interest payments are the single largest item of expenditure and accounted for more than 40% of the total non development expenditure in the 2003–04 budget. Defence expenditure increased fourfold during the same period and has been increasing due to India's desire to project its military prowess