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Prarthana Jalan
On Thursday, 27 February 2014 12:38 PM, TAXVANI <noreply@blogger.com> wrote:
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| Posted: 27 Feb 2014 06:24 AM PST CSR activities will have to be within India, and the new rules will also apply to foreign companies registered here The much awaited rules for implementation of corporate social responsibility (CSR) by India Inc, which were notified by the Ministry of Corporate Affairs (MCA) on Thursday, have excluded political funding from the ambit of activities that would qualify as CSR. The notification, which comes into effect starting April 1, clearly states that any contribution from companies made "directly or indirectly" to any political party would not be considered as CSR activity. The move assumes significance as it comes merely months ahead of general elections in the country. The new Companies Act, 2013 mandates companies having a net worth of Rs 500 crore or more; or a turnover of Rs 1,000 crore or more; or a net profit of Rs 5 crore or more to spend of at least 2 % of their average net profit of past three years on CSR activities. Last year, the government provided a new structure for political funding by corporates, under which companies can set up 'Electoral Trusts' for giving funds to registered political parties of the country. The new 'Electoral Trust' structure also provides for some tax benefits to these entities for funds provided to political parties. About a dozen entities including those linked to large business houses such as Ambanis, Tatas, Mittals, Birlas and Vedanta have already set up such trusts. The government's latest notification for implementation of corporate social responsibility (CSR) by companies cover a wide range of activities, where investments made by companies will qualify as CSR spend. Such activities include varied and diverse areas such as projects promoting preventive health care and sanitation, livelihood enhancement projects, protections of national heritage art and culture and steps for the benefit of armed forces veterans. MCA consulted various stakeholders including stalwarts of India Inc before finalizing and notifying the rules. "The rules provide for the manner in which CSR committee shall formulate and monitor the CSR policy, manner of undertaking CSR activities, role of the board of directors therein and format of disclosure of such activities in the board's report," Minister for Corporate Affairs Sachin Pilot said. With the rules in place now, various new areas such as livelihood enhancement and rural development projects, promoting preventive health care and sanitation as well as making safe drinking water available would be considered as CSR activities. Working towards protection of national heritage, art and culture including restoration of buildings and sites of historical importance and works of art, setting up public libraries, promotion and development of traditional arts and handicrafts would also come under CSR ambit. Various activities aimed at reducing inequalities faced by socially and economically backward groups have been included. Other CSR activities would be ensuring ecological balance, protection of flora and fauna, animal welfare, agro-forestry, conservation of natural resources and maintaining quality of soil, air and water. Notifications have been issued for Section 135 and Schedule VII of the Companies Act, 2013, that relate to CSR spending by companies.(Business Standard) |
| Posted: 27 Feb 2014 05:22 AM PST Where complainant CA failed to produce statutory required documents signed by both auditee and auditor indicating undisputed audit fee, it could not be alleged of professional misconduct on acceptance of assignment by other CA Refer: [2014] 42 taxmann.com 82 (Calcutta) HIGH COURT OF CALCUTTA Council of the Institute of Chartered Accountants of India v. Manish Kumar Surana |
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