19 August 2014
CSR expenditure includes all expenditure including contribution to corpus, for any projects or programs relating to CSR activities approved by the Board on the recommendation of its CSR Committee. However , the expenditure on an item which is not in conformity or not in line with activities which fall within the purview of Schedule VII of the Act shall not be regarded as eligible CSR expenditure.
The company may contribute in the following manner:
a.By Charity: Company can donate money to various charitable trusts, societies, NGOs etc. who work for social economic welfare of society. b.By Contract: Company can tie up with an NGO or any such other agency which can carry out the projects on behalf of the company. c.By Itself: Company can take up a project on its own or create its own trust and use its own staff for its proper working/ monitoring or through other trusts/ societies. The companies may adopt any one, more or all of the above ways for the purpose of CSR activities .
Any activity by way of contribution to the trust shall be eligible contribution provided its activities are in adherence with these prescribed in Schedule VII of the Act. The contribution should not be for the employees and the activities are must be undertaken in India.
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