Corporate Social Responsibility and Legal Provisions

Corporate Social Responsibility and Legal Provisions

S.135 of Companies Act, 2013 : - 

• Rs. 500 crore  + net worth; 
• Rs. 1000 crore + turnover;
• Rs. 5 crore + net profit; 

CSR Committee of Board - It has 3+ Directors[1 should be independent Director].

Amount to be Spent - S.135 (5) says - At least 2% of average net profits during last 3 preceding FYs. 

Waiver - S.135 (9) says - If amount to be spent is < Rs. 50 lacs, then no need of CSR Committee.

Penalty - S.135 (7) says it can go maximum Rs. 1 crore for Company.