CSR Compliance Services - Consultancy & Filing

Companies with net worth ≥ ₹500 crores, turnover ≥ ₹1000 crores, or net profit ≥ ₹5 crores in any financial year need to comply with CSR.

Companies must spend at least 2% of average net profits of the preceding three financial years on CSR activities.

Unspent CSR amount must be transferred to specified funds or face penalties as per Companies Act.

Yes, section 135(1) of the Act and Rule 3 of Companies (CSR Policy) Rules, 2014 commences with the words “Every company….” thus the provisions apply to Foreign Company as well.

As per definition given under section 2 (41) of the Act, the term ‘year’ refers to financial year. Hence, ongoing projects to be considered financial year wise.

Yes, as per sub-rule 4 of Rule 4 of Companies (CSR Policy) Rules, 2014 a company may collaborate with other companies for undertaking projects or programmes or CSR activities in such a manner that the CSR committees of respective companies are able to report separately on such projects or programmes.

No, a company can open a single special account, called ‘Unspent Corporate Social Responsibility Account’, for a financial year. A company only requires opening a separate ’Unspent CSR Account’ for each financial year. It is not required to open a separate account for each ongoing project.

No, as per sub-section 1 of section 135 of Companies Act, 2013 and Rule 3 of Companies (CSR Policy) Rules, 2014, CSR Compliance is appliable to every company which fulfills the criteria specified. The compliance with CSR requirements is specific to each company. Every company irrespective of whether it’s a holding or subsidiary to another company requires to check for criteria of applicability of CSR obligation & comply with section 135 accordingly.

No, salaries paid to the regular employees and staff of the company cannot be counted towards CSR expenditure. However, there are two exceptions. Salaries paid to a dedicated CSR team or personnel specifically appointed for CSR implementation are permissible. Additionally, reasonable administrative overheads, which can include staff costs directly related to CSR management, are allowed but are capped at 5% of the total CSR expenditure for that financial year.

No. Any amount contributed, whether directly or indirectly, to any political party under Section 182 of the Companies Act, 2013, shall not be considered a valid CSR activity. CSR funds must be used for the social development activities listed in Schedule VII.

The applicability of CSR provisions is determined by the financial thresholds (net worth, turnover, or net profit) of a company registered under the Companies Act. Therefore, if a Section 8 company (a non-profit organization) itself meets any of these criteria, it must comply with CSR rules. More commonly, other companies fulfill their CSR obligations by contributing to eligible Section 8 companies, registered public trusts, or registered societies that carry out charitable activities.