JAYANTA KUMAR BANDYOPADHYAY (professional service) (293 Points)
06 December 2013In the name of CSR , company is making an huge payment of Rs.30 lakhs in installments to a local influential society recognised under Society Act. My reading is that since all payments are in excess of Rs.50000, without reimbursement documents like honorarium , medical camp etc, it will come under tax net.Thet do not mention PAN details on their Invoices. I am not getting any support.Please advise me.
Jitndr
(Final Student)
(92 Points)
Replied 06 December 2013
The preamble to CSR Rules state that "CSR is a way of conducting business, by which corporate entities visibly contribute to the social good. Socially responsible companies do not limit themselves to using resources to engage in activities that increase only their profits. They use CSR to integrate economic, environmental and social objectives with the company’s operations and growth." This statement, in my view, clearly suggests that CSR spend meets "business purpose test" for tax law.
Notification from CBDT is awaited.
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