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csr applicability

09 June 2018

Dear Sir/Madam,
please whether csr will be applicable on the given case or not?
Profit before extraordinary items = 6 Cr.
profit before tax = 4 Cr.
Profit after tax = 2.6 Cr.

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5 Replies

Vaishali Jain (Currently working on improving my skills and capabilities) (2539 Points)
Replied 09 June 2018

No, CSR is not applicable.
To attract the prov of sec 135 of CA 2013 apart from other two conditions of Net worth or Turnover
the net profit should be Rs. 5 cr or more. hence in your case CSR is not applicable

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pranjul shukla (16 Points)
Replied 09 June 2018

whether for the applicability of csr provisions, here 'net profit' means profit before tax or profit after tax? or we should calculate the net profit as per sec 198 (for applicability)?

Vaishali Jain (Currently working on improving my skills and capabilities) (2539 Points)
Replied 09 June 2018

Yes, you need to calculate the anount of profit as per sec 198

pranjul shukla (16 Points)
Replied 09 June 2018

Thanks vaishali ji.

1 Like

Srikanth Yekkaldevi (179 Points)
Replied 11 June 2018

companies shall establish a CRS committee if they satisfies any of the following conditions

1) turnover exceeds 1000 CR

2) Net worth exceeds 500 CR

3) net profit exceeds 5 CR ( calculated as per sec 198)