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What is the objective of providing impact assessment of CSR activities?
The purpose of impact assessment is to assess the social impact of a particular CSR project. The intent is to encourage companies to take considered decisions before deploying CSR amounts and assess t...
Posted on: 3 years ago
What are the penal provisions relating to non- compliance with provisions other than section 135(5) and 135(6) of the Act?
In case of non-compliance with any other provisions of the section or rules, the provisions of section 134(8) or general penalty under section 450 of the Act will be applicable. Further, in case of no...
Posted on: 3 years ago
Is the penal provision in section 135(7) specific to non-transference of the unspent CSR amount?
Yes, section 135(7) clearly states the penalty for default in complying with the provisions of sub-section (5) or sub- section (6) only.
Posted on: 3 years ago
Will the penal proceedings apply even after the unspent amount has been transferred to the Unspent CSR Account or to the funds mentioned in Schedule VII of the Act?
The penalty does not relieve the company from the obligations under the law, and the penalty is over and above the obligated amount required to be transferred under section 135(5) or 135(6). The penal...
Posted on: 3 years ago
Can the amount transferred to ‘Unspent CSR Account’ of the company be utilised for regular business of the company?
No, the provisioning of a separate special account, namely the ‘Unspent CSR Account’, in any scheduled bank is to ensure that the unspent amount, if any, is transferred to this designated account and...
Posted on: 3 years ago
Should a company open a separate ’Unspent CSR Account’ for each ongoing project?
No, a company can open a single special account, called ‘Unspent Corporate Social Responsibility Account’, for a financial year in any scheduled bank, to transfer the unspent amount w.r.t ongoing proj...
Posted on: 3 years ago
Can funds earmarked for one project be used for another project?
Yes, the budget outlay dedicated for one project can be used against another project. In such a case, the Board and CSR Committee should appropriately record the alteration in the target spending and...
Posted on: 3 years ago
Does the Board have the power to abandon or modify an ongoing project within the permissible period of three years?
As per provisions of the CSR Rules, the Board may abandon or modify an ongoing project, partially or wholly, under exceptional circumstances, during the prescribed project period as per the recommenda...
Posted on: 3 years ago
Can ongoing projects be implemented through implementing agencies?
Yes, once the Board approves a project as an ongoing project, then it can choose to implement the project either itself, or through any of the implementing agencies as mentioned in rule 4(1) of the Co...
Posted on: 3 years ago
What are the responsibilities of the Board in case ongoing projects are undertaken by the company?
In case of ongoing projects, the major responsibilities ofthe Board, inter-alia, include:(i) identification of the ongoing projects;(ii) year-wise allocation of funds;(iii) transferring the unspent mo...
Posted on: 3 years ago