I would like to clarify the following doubt on CSR 1.Whether section 8 Company voluntarily can file CSR 1 even though it has not fulfilled the condition mentioned in Section 135? 2.Whether Section 8 Company can get money from any eligible company for CSR activities and spend the amount on behalf of the company ? or The company (Which one has Rs.1000 Crore T.O/Rs.500 Cr Net Worth or 5 Cr. Net Profit ) only can form the committee and spend the amount for the specified activities
3.What are the forms has to be filed for CSR Compliance & what are the documents have to attached with those forms?
06 July 2024
Here are the clarifications regarding CSR (Corporate Social Responsibility) compliance for Section 8 companies under the Companies Act, 2013:
1. **Filing CSR-1 by Section 8 Company:** - Section 8 companies (companies formed for promoting charitable objectives) are required to comply with CSR provisions if they meet the criteria specified in Section 135 of the Companies Act, 2013. This includes companies meeting certain financial thresholds (Rs. 1000 crore turnover, Rs. 500 crore net worth, or Rs. 5 crore net profit). - If a Section 8 company meets these criteria, it must allocate funds towards CSR activities as per the Act. - Section 8 companies that qualify under Section 135 are required to file CSR-1, which is the form for disclosure of CSR policy and activities undertaken. This form needs to be filed annually, even if the company does not undertake CSR activities.
2. **Receiving Funds for CSR Activities:** - Section 8 companies can receive funds from eligible companies (those meeting the financial criteria under Section 135) for CSR activities. - The Section 8 company can spend these funds on behalf of the eligible company, provided it is in compliance with the CSR activities specified under Section 135.
3. **Forms and Compliance for CSR:** - **CSR-1 Form:** This form is filed by eligible companies (including Section 8 companies meeting the criteria) to disclose their CSR policy and activities. It needs to be filed annually with the Registrar of Companies (RoC). - **Documents to Attach with CSR-1:** - CSR Policy: Details of the CSR policy formulated and implemented by the company. - Annual Report: Report on CSR activities undertaken during the year, specifying the projects or programs, amount spent, and outcomes. - Impact Assessment: If applicable, details of impact assessment of CSR projects undertaken. - Any other relevant documents supporting the CSR activities undertaken during the year.
- Non-compliance with CSR provisions can lead to penalties, so it's crucial for companies, including Section 8 companies, to ensure timely and accurate filing of CSR forms and compliance with CSR activities as per the law.
If you have specific details regarding your Section 8 company's financial status and CSR activities, it's advisable to consult with a company secretary or legal expert familiar with CSR compliance under the Companies Act, 2013, for precise guidance tailored to your situation.
06 July 2024
Here are the clarifications regarding CSR (Corporate Social Responsibility) compliance for Section 8 companies under the Companies Act, 2013:
1. **Filing CSR-1 by Section 8 Company:** - Section 8 companies (companies formed for promoting charitable objectives) are required to comply with CSR provisions if they meet the criteria specified in Section 135 of the Companies Act, 2013. This includes companies meeting certain financial thresholds (Rs. 1000 crore turnover, Rs. 500 crore net worth, or Rs. 5 crore net profit). - If a Section 8 company meets these criteria, it must allocate funds towards CSR activities as per the Act. - Section 8 companies that qualify under Section 135 are required to file CSR-1, which is the form for disclosure of CSR policy and activities undertaken. This form needs to be filed annually, even if the company does not undertake CSR activities.
2. **Receiving Funds for CSR Activities:** - Section 8 companies can receive funds from eligible companies (those meeting the financial criteria under Section 135) for CSR activities. - The Section 8 company can spend these funds on behalf of the eligible company, provided it is in compliance with the CSR activities specified under Section 135.
3. **Forms and Compliance for CSR:** - **CSR-1 Form:** This form is filed by eligible companies (including Section 8 companies meeting the criteria) to disclose their CSR policy and activities. It needs to be filed annually with the Registrar of Companies (RoC). - **Documents to Attach with CSR-1:** - CSR Policy: Details of the CSR policy formulated and implemented by the company. - Annual Report: Report on CSR activities undertaken during the year, specifying the projects or programs, amount spent, and outcomes. - Impact Assessment: If applicable, details of impact assessment of CSR projects undertaken. - Any other relevant documents supporting the CSR activities undertaken during the year.
- Non-compliance with CSR provisions can lead to penalties, so it's crucial for companies, including Section 8 companies, to ensure timely and accurate filing of CSR forms and compliance with CSR activities as per the law.
If you have specific details regarding your Section 8 company's financial status and CSR activities, it's advisable to consult with a company secretary or legal expert familiar with CSR compliance under the Companies Act, 2013, for precise guidance tailored to your situation.
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