The subject of Corporate Social Responsibility (CSR) is increasingly becoming one of the core discussion matters for the Board of Directors of progressive companies. For the first time, section 135 of the new Companies Act, 2013, introduced provisions for CSR and mandatory obligation for certain companies (including private companies and foreign companies having business operations in India). Over the past 10 years, the regulatory and tax aspects of CSR have evolved due to subsequent amendments, circulars and judicial precedents. 

In the current era of thrust on ESG (Environmental, Social and Governance), CSR activities can be used as an instrument of achieving some of the ESG objectives. While the quantum of CSR may be limited, the impact of CSR activities in terms of enhancing a company’s trust, credibility and valuation with its shareholders, customers, vendors, lenders, employees and other stakeholders can be manifold. Hence, formulation of proper CSR policy, annual plan, selection of activities and implementing agencies, monitoring mechanism and communication to stakeholders is of vital significance to any large corporate.

Considering the significance of CSR in the compliance domain, please find attached herewith our Publication on the said topic. In this publication, we have endeavoured to summarize the provisions regarding:

Companies covered by mandatory CSR obligation

  1. Computation of CSR amount

  2. Eligible CSR activities, approval and monitoring mechanism

  3. Role of BOD, CSR Committee and CFO

  4. Treatment of Unspent CSR Amount

  5. Disclosures and Reporting

  6. Impact assessment including mandatory requirement for independent assessment

  7. Penal provisions

  8. Accounting and Tax Treatment

  9. CSR activities and GST

We hope you find the same useful.

Request for Publication