Corporate Social Responsibility [CSR]
Under CSR regime companies above certain threshold needs to spend 2% of their average 3 years Net profit towards activities that will bring betterment of society.
The threshold specified under Companies Act 2013 is companies with
- at least R.5 crores of net profit in any year or
- Rs. 1,000 crore of Turnover or
- Rs.500 crore Net worth.
Funds given to political parties and spending towards benefit of companies own empoyees and their families will not count as CSR spending.
Companies are required to have a CSR policy approved by its Board of Directors and must have a monitoring mechanism. CSR policy must be displayed on company's website.
