New Corporate Social Responsibility (CSR) Rules Announced
The much-awaited rules for the new ‘corporate social responsibility’ (CSR) regime were notified on Thursday. Under these rules, companies with sizable businesses are required to spend a minimum of 2 percent of their net profit for the benefit of society.
i. The CSR activities must be conducted within India, and the new rules will also apply to foreign companies registered here.
ii. However, funds given to political parties and 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 stated that these activities need to be undertaken as per the 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, Rs 1,000 crore turnover, or Rs 500 crore net worth.
v. Such companies will need to spend 2 percent of their three-year average annual net profit on CSR activities in each financial year, beginning the next fiscal year, 2014-15.
vi. A company can also carry out CSR works through a registered trust, society, or a separate company.
vii. As per the rules, a company may also collaborate with other companies for CSR activities, provided they separately report on spending for such projects or programs.
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 CSR activities.
For details, please see the attached notification/rule.
Regards,
Amit Kishore
From India, Delhi
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6The much-awaited rules for the new ‘corporate social responsibility’ (CSR) regime were notified on Thursday. Under these rules, companies with sizable businesses are required to spend a minimum of 2 percent of their net profit for the benefit of society.
i. The CSR activities must be conducted within India, and the new rules will also apply to foreign companies registered here.
ii. However, funds given to political parties and 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 stated that these activities need to be undertaken as per the 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, Rs 1,000 crore turnover, or Rs 500 crore net worth.
v. Such companies will need to spend 2 percent of their three-year average annual net profit on CSR activities in each financial year, beginning the next fiscal year, 2014-15.
vi. A company can also carry out CSR works through a registered trust, society, or a separate company.
vii. As per the rules, a company may also collaborate with other companies for CSR activities, provided they separately report on spending for such projects or programs.
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 CSR activities.
For details, please see the attached notification/rule.
Regards,
Amit Kishore
From India, Delhi
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CSR (Corporate Responsibility) .ppt
Social responsibility lecture.pdf