Regarding penal provisions for csr
This query is : Open
09 June 2015
Hello dear members,
I want to know which is the section in which penal provision for non compliance of CSR requirement is mentioned?
Thanks in advance
I want to know which is the section in which penal provision for non compliance of CSR requirement is mentioned?
Thanks in advance
09 June 2015
There is no penal provision for non compliance of CSR. Here I assume that non-compliance means the company has failed to spend the 2% of Avg Net Profit on CSR activities.
However, disclosure is to be made in the Board's Report as per Sec 134 of the Co's Act, 2013
However, disclosure is to be made in the Board's Report as per Sec 134 of the Co's Act, 2013
09 June 2015
Hi!
I got to know penal provisions in various websites.
Extracts
Failure to Comply
While a company is not subject to liability for failing to
spend on CSR, a company and its officers are subject to
liability for not explaining such a failure in the annual
report of the board of directors. There is currently no
guidance as to what constitutes a sufficient or statutorily
valid explanation for failure to spend in the board
report. In addition, a company and its directors are
liable even if they fail to report on CSR activities that
actually were conducted.
Failure to explain is punishable by a fine on the
company of not less than 50,000 rupees (about U.S.
$900) and up to 25 lakh rupees (about U.S. $46,000).
Further, officers who default on the reporting provision
could be subject to up to three years in prison and/or
fines of not less than 50,000 rupees (about U.S. $900)
and as high as 5 lakh rupees (about U.S. $9,200).
I got to know penal provisions in various websites.
Extracts
Failure to Comply
While a company is not subject to liability for failing to
spend on CSR, a company and its officers are subject to
liability for not explaining such a failure in the annual
report of the board of directors. There is currently no
guidance as to what constitutes a sufficient or statutorily
valid explanation for failure to spend in the board
report. In addition, a company and its directors are
liable even if they fail to report on CSR activities that
actually were conducted.
Failure to explain is punishable by a fine on the
company of not less than 50,000 rupees (about U.S.
$900) and up to 25 lakh rupees (about U.S. $46,000).
Further, officers who default on the reporting provision
could be subject to up to three years in prison and/or
fines of not less than 50,000 rupees (about U.S. $900)
and as high as 5 lakh rupees (about U.S. $9,200).
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