Whether any contribution made to the fund, which is directly in relation to the welfare of its employees, amounts to Charitable Contribution under Companies Act 2013?
Read more at: https://www.caclubindia.com/forum/sec-181-of-companies-act-2013-charitable-contribution-293920.asp#.U5LjAnKSxac
I would like to remind you that the same situation was covered under Companies Act,1956, where it was specifically excluded from the meaning of Charitable Contribution.
But in Companies Act 2013, Act does not specifically exclude/include such situation.
07 June 2014
Yes there is no specific exclusion but as per AS 15 it will be a part of Employees Benefit and therefore it should not be treated as Charitable Contribution.
It is as per my understanding. But the section needs more clarity.
08 June 2014
I am not that expert in this field, still learning.
But if whatever taken in employee benefit expenses can not be a charitable contribution then what is the logic behind specifically exempting that situation in Companies Act,1956?
CAclubindia
