12 June 2015
What is consequence of non compliance with CSR provision? As per provision companies is required to spent 2% of Net Profit.
In my case co. have net profit of 5Cr and 2% of which comes 10Lac ...the client said why i spend this huge amt ....so please tell if there is any penal provision for the same...
12 June 2015
Second proviso to sub-section (5) of Section 135 provides that in case any amount as required is not spent in a particular year, the same is to be disclosed in the board report along-with the reasons thereof. However, the Rules further prescribe that the board should also report the unspent spent. Hence, disclosure of the amount not spent and the reasons for the same are the implications.
CAclubindia
