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Corporate Social Responsibility implementation

12 February 2022

Previous year our company have earned a net profit above 5 Crore. I have heard that there will be applicability of CSR. What are the things that we would comply in this situation. And also need to know that how we can implement project under this scheme

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Chirag (Professional) (1979 Points)
Replied 15 February 2022

Apply Sec 135 Limits ,which is 1000 Crore of turnover ,500 crore of networth and adjusted PAT u/s 198 is 5 Crore or more ....If it's there then CSR contribution shall be at least 2% of average net profit u/s 198 , if contribution is exceeding 50 lacs then CSR Committee of Bod to be formed else board can also discharge the duty , term of reference normally selecting project in conformity of schedule VII ,making annual action plan ,and identifying implementing agency ,if there is any project then it should complete within 3 yrs and unspent amount for ongoing project can be transferred within 30 days of end of FY ,otherwise company can also donate to fund prescribed in Schedule VII ..