CSR EXPENDITURE CAN BE CAPITALISED & DEP CAN BE CLAIMED: CA NITESH MORE
1) CSR Expenditure can be capitalized as Goodwill & Depreciation can be claimed. The reason is that CSR exp will improve the image of the Company in the eye of society & hence, an expenditure for goodwill. Company will able to sell more product in future with improved image i.e. Goodwill.
2) Big companies will be expending crores of rupee as CSR & possibility of eligibility for claiming dep will be work as an incentive for them to incur such expenditure. It is to be noted that there is no compulsion on companies to incur such expenditure. Company can, by giving reason in Boards report, opt not to incur such expenditure.As per Finance bill,2014, such expenditure can not be claimed u/s 37(1).The possibility of capitalization & claiming depreciation will work as an incentive for companies to actually incur such expenditure.
3) Dr Ravi Gupta, co author with Dr Girish Ahuja has also supported my views.
Warm Regards
"Team" CA.Nitesh More
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