Pre-budget Memorandum for Union Budget 2012-13
Regarding Corporate Social Responsibility (CSR) by companies, the Institute of Company Secretaries of India (ICSI), in its Corporate Taxation – Pre-Budget Memorandum for Union Budget 2012-13, has suggested that :
“Corporate sector needs encouragement to progressively integrate the activities on the social front for the development of the society, with the business purpose and business plan of the company.”, and has suggested that “It is suggested that a new section may be introduced in the Income Tax Act to recognize the expenditure which is incurred by a company and which is certified by a Practicing Company Secretary (after conducting CSR audit) as expenditure incurred for discharging the corporate responsibility towards the society. Companies Bill, 2011 contains a provision which requires specified category of companies to incur a prescribed percentage of their profit on CSR Activities during the financial year. Therefore, now a need arises to encourage companies towards CSR, by allowing them a weighted deduction of 150% of the amount expanded on CSR activities”
As regards the Corporate Tax Rate, the apex Institute suggests “The surcharge and cess on corporate tax may be abolished. Further, corporate tax rate may be brought down to 25% and tax rate applicable to foreign companies may also be relooked to provide level playing field and to facilitate better tax compliance and bring down cost of doing business in India.”
The following scrennshot has been taken from 29-pages long document published by the ICSI. Original document is attached herewith. Please find.
Members are requested to kindly share their views regarding the Memorandum.
Regards,
Sourav Banerjee
CAclubindia
