To form a CSR

This query is : Resolved

CA,CS Robin Sojrani (Querist)
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09 January 2008 Dear Sirs,

Plz suggest HOW TO PLAN expenditure for incurring CSR i.e [Corporate Social Responsibility] activity.

Ours clients are 7 group companies including 2 listed and 2 foreign companies & are planing to carrying expenditure on CSR[Corporate Social Responsibility]. Plz Suggest whether to form a Co-operative ,seperate trust and contribute to corpus fund or to form a Sec 25 Compny or any other ? to get the beneficts of the provisons under various respective Acts i.e. Income tax act,companies act , indian trust act or cooperatives society act.

Awaiting Expert Comments on the issue.

R.V.RAO

R.V.RAO (Expert)
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09 January 2008 CORP. SOCIAL RESPOSIBILITY APART FROM SETTING UP TRUSTS OR SEC. 25 COMPANIES IS ALSO ACHIEVED BY CORPOTATES IN INDIA BY SSETTING UP INDUSTRIAL UNIST S IN BACKWARD OR HILLY STATES AS SHOWN IN PRACTICE BY HERO HONDA(SEE BELOW).
WHY NOT INDUSTRIALISE OUR COUNTRY'S HILL STATES AND AND ACHIEVE CSR ?

Companies like HERO Honda chose as part of corp. social responsibility to locate industrial units in hill states .the location has been chosen taking into consideration a number of factors, including the existing support infrastructure available and the tax sops offered by Government for setting up manufacturing units in the hill states. These sops include a 100% excise exemption for 10 years and 100% Income Tax exemption for the first 5 years and 30% for the next 5 years, amongst other benefits. These tax benefits will help the company to significantly improve operating margins.

Hero Honda has strategically chosen the new plant location in Haridwar, Uttranchal which is today, one of the fastest growing States in India . The State has made tremendous progress in the infrastructure sector on all fronts - power, roads, telecommunication, information technology, water supply among others. Hero Honda aims to assist in the economic development of the state through its new plant in Haridwar.
source:www.herohonda.com
THIS IS ONLY A SUGGESTION IF YOU PLEASE TAKE IT IN DEVELOPMENT SPIRIT.
R.V.RAO