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Whether expenses related to transfer of capital asset as provided under rule 7(4) of Companies (CSR Policy) Rules, 2014, will qualify as admissible CSR expenditure?

Whether expenses related to transfer of capital asset as provided under rule 7(4) of Companies (CSR Policy) Rules, 2014, will qualify as admissible CSR expenditure?

Yes, the expenses relating to transfer of capital asset such as stamp duty and registration fees, will qualify as admissible CSR expenditure in the year of such transfer.

Posted on: 11 months ago

Whether contribution to the corpus of an entity is an admissible CSR expenditure?

Whether contribution to the corpus of an entity is an admissible CSR expenditure?

No, the provision relating to contribution to corpus as admissible CSR expenditure has been amended and the contribution to corpus of any entity is not an admissible CSR expenditure w.e.f. 22nd Januar...

Posted on: 11 months ago

What is the meaning of the term ‘administrative overheads? What is the maximum permissible limit for administrative overheads?

What is the meaning of the term ‘administrative overheads? What is the maximum permissible limit for administrative overheads?

Administrative overheads are the expenses incurred by the company for ‘general management and administration’ of CSR functions. However, the expenses which are directly incurred for the designing, imp...

Posted on: 11 months ago

How is average net profit calculated for the purpose of section 135 of the Act? Whether ‘profit before tax’ or ‘profit after tax’ is used for such computation?

How is average net profit calculated for the purpose of section 135 of the Act? Whether ‘profit before tax’ or ‘profit after tax’ is used for such computation?

The average net profit for the purpose of determining the spending on CSR activities is to be computed in accordance with the provisions of section 198 of the Act and will also be exclusive of the ite...

Posted on: 11 months ago

What is the role of the Government in monitoring compliance of CSR provisions by companies?

What is the role of the Government in monitoring compliance of CSR provisions by companies?

The Government monitors the compliance of CSR provisions through the disclosures made by the companies in the MCA 21 portal. For any violation of CSR provisions, action can be initiated by the Governm...

Posted on: 11 months ago

What are the mechanisms for monitoring the CSR process?

What are the mechanisms for monitoring the CSR process?

CSR is a Board-driven process, and the Board of the company is empowered to plan, decide, execute, and monitor the CSR activities of the company based on the recommendation of its CSR Committee. The C...

Posted on: 11 months ago

What is the role of the Government in the approval and implementation of the CSR programmes/projects of a company?

What is the role of the Government in the approval and implementation of the CSR programmes/projects of a company?

Provisions of section 135, read with Schedule VII of the Act and Companies (CSR Policy) Rules, 2014 provide the broad framework within which the eligible companies are required to formulate their CSR...

Posted on: 11 months ago

What are the functions of the CSR Committee?

What are the functions of the CSR Committee?

The Corporate Social Responsibility Committee shall — (i) formulate and recommend the CSR policy to the Board; (ii) recommend the amount of expenditure to be incurred on CSR activities; (iii) monitor...

Posted on: 1 year ago

Whether provisions of CSR are applicable to a section 8 Company?

Whether provisions of CSR are applicable to a section 8 Company?

Yes, section 135(1) of the Act commences with the words “Every company........” and thus applies to section 8 companies as well

Posted on: 1 year ago

Which companies qualify for CSR under the Companies Act,2013

Which companies qualify for CSR under the Companies Act,2013

A company satisfying any of the following criteria during the immediately preceding financial year is required to comply with CSR provisions specified under section 135(1)of the Companies Act,2013 rea...

Posted on: 1 year ago