Clarification regarding Corporate social responsibility under section 135 of companies Act, 2013
Notification related to Section 135 of the companies Act, 2013- CSR Provisions as follow:-
1. The Statutory provision and provisions of CSR Rules is to ensure that while activities undertaken in pursuance of the CSR policy must be relatable to Schedule VII of the companies Act, 2013, the entries in the said schedule VII must be interpreted liberally so as to capture the essence of the subject enumerated in the said schedule. The items enlisted in the amended schedule VII of the Act, are broad based and are intended to cover a wide range of activities.
2. If Companies makes contribution to charitable ( off event) such as marathons/awards/charitable contribution /advertisement/ sponsorship of TV Programs etc then it would not be qualified as part of CSR expenditure.
3. Expenses incurred by companies for the fulfillment of any Act, Statute of regulation, such as Labour laws, Land acquisition Act etc, is not part of CSR Expenditure.
4. Salaries paid by the companies to regular CSR Staff as well as to volunteers of the companies can be factored into CSR project cost as part of CSR Expenditure.
5. "Any Financial Year" referred under sub -section 1 of section 135 of the companies Act read with rule 3 (2) of companies CSR Rule 2014 implies any of the three preceding Financial year".
6. Expenditure incurred by foreign Holding company for CSR activities in India will qualify as CSR spends for the Indian Subsidiary if the CSR Expenditure are routed through Indian Subsidiaries.
7. Contribution to corpus of a Trust/Society/Section 8 companies etc will qualify as CSR expenditure as long as the Trust/Society/section 8 companies etc is created exclusively for undertaking CSR activities or where the corpus is created exclusively for a purpose directly relatable to a subject covered in schedule VII of the Act.
Not perfect grammer and very small length and still this is in article section. Moderator move it to forum section. The length is not appropriate to call it an article and even its not fully explained.