MAINTAINANCE OF COMPANY SOCIAL RESPONSIBILITY CONTRIBUTION

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swamy

swamy (Querist)
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30 March 2023 AS PER CSR RULES COMPULSARY TO OPEN SEPARATE BANK ACCOUNT TO MAINTAIN CSR CONTRIBUTION?

CA Sanat Pyne

CA Sanat Pyne (Expert)
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30 March 2023 Yes, as per the CSR (Corporate Social Responsibility) Rules notified under the Companies Act, 2013, companies are required to open a separate bank account to carry out their CSR activities. The CSR Rules mandate that the CSR funds should be deposited and spent only through this separate CSR account.
The CSR Rules specify that the Board of Directors of the company should ensure that the CSR funds are utilized only for the purposes of the CSR activities and that any unspent CSR funds are transferred to a special account called the Unspent CSR Account within 30 days from the end of the financial year. The unspent CSR funds must be spent within the next three financial years, failing which they should be transferred to a specified fund as per the CSR Rules.
Therefore, it is essential for companies to open a separate CSR bank account to maintain their CSR contribution as per the CSR Rules. This will help the company to ensure proper utilization of CSR funds, maintain transparency, and comply with the legal requirements.