CSR expenditure in Kind

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rahul k (Querist)
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25 October 2017 If a company donates it's software as CSR, so will it qualify as amount spennt if 2% of Avg profit as per section 135 of companies act 2013?

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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27 November 2017 The requirements are only on spending. Hence, whether the expenditure is in cash or kind should not matter as long as the company is expending as per the provisions, on a project which is eligible for CSR spending. In case of any spending in kind, the amount spent should be based on the cost of the material and not selling price. Also, items that the company uses in ordinary course of business cannot be the basis of CSR spending.