Answer each of the following as per the amended rules i.e. Clarification on spending of CSR funds for "Har Ghar Tiranga" campaign (MCA General Circular No. 08/2022 dated 26th July, 2022) and the Companies (Corporate Soci

CS Professional · Secretarial Audit, Compliance Management and Due Diligence · PYQS · December 2023
Answer each of the following as per the amended rules i.e. Clarification on spending of CSR funds for "Har Ghar Tiranga" campaign (MCA General Circular No. 08/2022 dated 26th July, 2022) and the Companies (Corporate Social Responsibility Policy) Amendment rules, 2022 (MCA notification no. G.S.R.715(E) dated 20th September, 2022): (i) If the total Corporate Social Responsibility (CSR) expenditure done by a company in previous Financial Year (FY) 2022-23 is ₹30 crore, then how much amount shall the company undertaking impact assessment may book towards CSR for the FY 2022-23.

Answer & Explanation:

As per Rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014, the Amendment provides that the cost of impact assessments, which can be considered as CSR spending, shall not be greater than 2% of all CSR expenditures for the applicable financial year or ₹50 lakh, whichever is higher. Therefore, if the total CSR expenditure done by a Company in Previous Financial Year 2022-23 is ₹30 crore, then the amount the Company undertaking impact assessment may book towards Corporate Social Responsibility for the financial year 2022-23 shall be 2% of ₹30 Crore = ₹60 lakh or ₹50 lakh whichever is higher i.e. the CSR spending can be up to ₹60 lakh.

Topics: Corporate Social Responsibility (CSR)

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