A PUBLIC LIMITED COMPANY HAS PROFIT IN THE F.Y. 2015-16 OF RS. 63,30,19,370 ,IN F.Y. 2014-15 OF RS.21,3,81,565 AND LOSS OF RS.17,33,53,686 IN F.Y. 2013-14. NOW AVERGAE PROFIT IN PRECEDING 3 FINANCIAL YEARS IS RS.22,36,82,417, CSR BUDGET i.e. 2% OF AVERAGE NET PROFITS IS RS.44,73,648 FOR THE F.Y. 2016-17. COMPANY HAS LOSS OF RS. 7,00,00,000 IN FINANCIAL YEAR 2016-17 AND ALSO ACCUMULATED LOSSES OF RS.160 CRORE. QUESTION IS WHETHER COMPANY IS LIABLE TO SPEND CSR AMOUNT OF RS.44,73,648 IN THE FINANCIAL YEAR 2016-17 AS PER COMPANIES ACT, 2013.
1 Replies
Diksha Dhagat
(CA Practice )
(33 Points)
Replied 03 August 2017
As per Rule 3, of Companies (Corporate Social Responsibility) Rules 2014, a company which ceases to be a company covered u/s 135(1) for a continuous period of 3 F.Y's is only exempt from incurring CSR Expenditure. In the above case, although the company has incurred loss in the F.Y: 2016-17 but since in 2015-16, its N.P. exceeded 5 crores, it is covered under Sec 135 in the current year and therefore CSR Expenditure will have to be undertaken in 16-17.
Recent Topics
- TDS vs TCS who eligible to deduct tds
- E-way Bill Limit In Maharashtra
- Requirement of filing of form MSME-1
- Income tax query capital gain & exemption
- LTCG on flat
- Acquisition Cost after Merger
- Clubbing (Income Tax)
- Sales Invoice raised in feb-25 but now some materi
- Transfer of Nominee Share to Body corporate
- GSTR 4 FOR 24-25 due date of annual return
Related Threads
Trending Online Classes
-
GST LIVE Certification Course - 42nd Weekend Batch(With Govt Certificate)
Industry Expert17 May 2025
CAclubindia
