Who can fund in CSR opportunities?
Anyone can fund the CSR opportunities available on IIG. IIG is the project discovery platform that allows corporates to connect with the CSR project promoters. All further collaboration happens between the investor and the promoter.
From where are the CSR opportunities sourced?
All the opportunities are sourced from state governments and government backed agencies and institutions.
Are these CSR opportunities compliant with the government CSR mandate under the Companies Act, 2013?
All the CSR opportunities are sourced from government departments and government backed agencies and institutions and they have been defined under CSR mandates by respective authorities.
Can I monitor the projects that I fund?
IIG is a project discovery platform. Once you express interest in a project an email will be sent to you with the details of the relevant person to connect with. Investor can directly connect with the project owner and for any further information or help you can contact the Invest India point of contact as mentioned on the CSR project details page.
Do I have to invest through the portal?
No, IIG is only a project discovery platform. All investment decision are made outside this platform.
How can I connect with the person in charge?
Once you express interest in a project an email will be sent to you with the details of the relevant person to connect with.
Who are the people I will have to be in contact with for additional details?
You will be put in touch with the nodal officer in the state department as well as the manager on the project site.
In case of any issues or delays who can I reach out to?
A special point of contact will be assigned to you from Invest India who will ensure a smooth process through your entire investment cycle. The point of contact details is available on the CSR project details page.
Are all project on this website verified and updated?
All the projects have been procured from the state governments and government backed agencies and institutions. The projects have been verified by the respective departments, agencies and institutions.
I am looking for similar projects in a location closer to my office/factory, can you help with this?
You can use the location filters available on IIG to find projects of your interest. You may also contact Invest India that works closely with all states across India, so that they can help you identify such projects.
What is meaning of 'any financial year' mentioned in Section 135 (1) of the Companies Act, 2013?
"Any Financial year" referred under Sub- Section (1) of Section 135 of the Act read with Rule 3(2) of Companies CSR Rule, 2014 implies any of the three preceding financial years ( may refer General Circular No. 21/2014, dated: 18.06.2014)
Compliance under section 135 of the Act i.e. Corporate Social Responsibility, is applicable from which Financial Year?
The compliance of the provisions of CSR under the Companies Act, 2013 i.e. constitution of CSR Committee, formulation of CSR Policy, the spending of requisite amount on CSR activities came into force from April, 2014
Whether expenditure by Companies on activities covered under Schedule VII for the fulfillment of any Act/Statute of Regulations will count as CSR expenditure?
This would not count as CSR expenditure. (may refer point no. (iii) of General Circular No. 21/2014, dated: 18.06.2014)
Can the expenditure incurred towards personnel exclusively appointed by the companies for implementing the CSR activities of the company, be included in the expenditure earmarked for CSR activities?
Salary paid by the companies to regular CSR staff as well as employees, who render their services for CSR will be part of Administrative overheads and should not exceed 5% of the total CSR expenditure as per rule 4(6) of CSR Policy, Rules 2014.
Whether CSR expenditure of a company can be claimed as a business expenditure?
The amount spent by a company towards CSR cannot be claimed as business expenditure. The Finance Act, 2014 provides that any expenditure incurred by an assessee on the activities relating to corporate social responsibility referred to in section 135 of the Companies Act, 2013 shall not be deemed to be an expenditure incurred by the assessee for the purposes of the business or profession.
Whether the 'average net profit' criteria for section 135(5) is Net profit before tax or Net profit after tax?
Computation of net profit for section 135 is as per section 198 of the Companies Act, 2013 which primarily is NET PROFIT BEFORE TAX.
Can the CSR expenditure be spent on the activities beyond Schedule VII?
General Circular No. 21/2014 dated June18, 2014 of MCA has clarified that the statutory provision and provisions of CSR Rules, 2014, is to ensure that while activities undertaken in pursuance of the CSR policy must be relatable to Schedule VII of the Companies Act 2013. However, the entries in the said Schedule VII must be interpreted liberally so as to capture the essence of the subjects enumerated in the said Schedule. The items enlisted in the Schedule VII of the Act, are broad-based and are intended to cover a wide range of activities.
What tax benefits can be availed under CSR?
No specific tax exemptions have been extended to CSR expenditure per se. Finance Act, 2014 also clarifies that expenditure on CSR does not form part of business expenditure. While no specific tax exemption has been extended to expenditure incurred on CSR, spending on several activities like contributions to Prime Minister's Relief Fund, scientific research, rural development projects, skill development projects, agricultural extension projects, etc., which find place in Schedule VII, already enjoy exemptions under different sections of the Income Tax Act, 1961.
Which activities would not qualify as CSR Expenditure?
- The CSR projects or programs or activities that benefit only the employees of the company and their families shall not be considered as CSR activities in accordance with section 135 of the Act.
- One-off events such as marathons/ awards/ charitable contribution/ advertisement/sponsorships of TV programmes etc. would not be qualified as part of CSR expenditure.
- Expenses incurred by companies for the fulfillment of any Act/ Statute of regulations (such as Labour Laws, Land Acquisition Act etc.) would not count as CSR expenditure under the Companies Act.
- Contribution of any amount directly or indirectly to any political party shall not be considered as a CSR activity.
- Activities undertaken by the company in pursuance of its normal course of business.
Will being a holding or subsidiary company of a company which fulfils the criteria under section 135(1) make the company liable to comply with section 135, even if the company itself fulfills the criteria
Being a holding or subsidiary company of a company which fulfils the criteria under section 135(1) doesn't make the company liable to comply with section 135, unless the company itself fulfills the criteria.
Can donation of money to a trust by a company be treated as CSR expenditure of the company?
General Circular No. 21/2014 of MCA dated June 18, 2014 clarifies that Contribution to Corpus of a Trust/ Society/ Section 8 companies etc. will qualify as CSR expenditure as long as :
- (a) the Trust/ Society/ Section 8 company etc. is created exclusively for undertaking CSR activities or
- (b) where the corpus is created exclusively for a purpose directly relatable to a subject covered in Schedule VII of the Act
There is no need to prepare director's report for Foreign company so whether it is mandatory for foreign Company also to give reporting of CSR activity
In case of a foreign company, the balance sheet filed under sub-clause (b) of sub-section (1) of section 381 shall contain an Annexure regarding report on CSR.
Whether contribution to political party is considered as CSR activity?
Contribution of any amount directly or indirectly to any political party under section 182 of the Act, shall not be considered as CSR activity. (May refer Rule 4(7) of CSR Policy, Rules 2014).
Whether CSR projects or programmes for employee of the Company and their family will form part of CSR activity?
NO, The CSR projects or programs or activities that benefit only the employees of the company and their Families shall not be considered as CSR activities in accordance with section 135 of the Act'. (May refer Rule 4(5) of CSR Policy, Rules 2014).
Whether expenditure incurred on disaster relief qualifies for CSR or not?
Disaster relief can cover wide range of activities that can be appropriately shown under various items listed in Schedule VII. For example,
- (i) medical aid can be covered under 'promoting health care including preventive health care.'
- (ii) food supply can be covered under eradicating hunger, poverty and malnutrition.
- (iii) supply of clean water can be covered under 'sanitation and making available safe drinking water'. (May refer to annexure to General Circular dated 18.06.2014)
Whether contribution in kind is permissible as CSR or not?
Section 135 prescribes "....shall ensure that company spends....".The company has to spend the amount.