View Poll Results: By making CSR as a legal obligation, Is government is shifting its duties on shoulder of corporate?
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Amitkishore
Corporate Legal Compliances
Akhilesh HR
Senior Hr Executive
+1 Other

The much-awaited rules for the new ‘corporate social responsibility’ (CSR) regime were notified on Thursday, under which companies with sizable businesses would need to spend a minimum 2 per cent of net profit for the benefit of the society.

i.The CSR activities will have to be within India, and the new rules will also apply to foreign companies registered here.

ii.However, funds given to political parties and the money spent for the benefit of the company’s own employees (and their families) will not count as CSR.

Listing out the permitted CSR activities, the government said that they needed to be undertaken as per approval of the company’s board in accordance with its CSR Policy and the decision of its CSR Committee.

iii.The CSR rules will take effect from April 1, as part of the new Companies Act.

iv.They will apply to companies with at least Rs 5 crore net profit, or Rs.1,000 crore turnover or Rs.500 crore net worth.

v. Such companies will need to spend 2 per cent of their three-year average annual net profit on CSR activities in each financial year, beginning the next fiscal, 2014-15.

vi. A company can also carry out CSR works through a registered trust or society or a separate company.

vii. As per the rules, a company may also collaborate with other companies for CSR activities, provided they have to separately report about spending on such projects programmes.

Among other activities, livelihood enhancement and rural development projects, promoting preventive health care and sanitation as well as making safe drinking water available would be considered as CSR activities.

For details please see attached notification/rule.

Regards

Amit kishore

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File Type: pdf CompaniesActNotification2_2014.pdf (1.88 MB, 473 views)

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Dear All Please find attach Gazette / Notification for New ‘corporate social responsibility’ (CSR) Dt. 28.02.2014. Regards, Prashant Satbhai

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File Type: pdf Gazette Notification for New CSR.pdf (336.0 KB, 443 views)

Dear Friends, If any corporate failed to comply with the CSR then what’s the penalty?
Dear Kumarhai
No Penalty, if corporate failed to comply with the CSR
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