#CAN A COMPANY SPEND 100% OF ITS CSR AMOUNT THROUGH  AGENCIES- NO SAYS CSR RULES 2014 #
Channel: R V Seckar
Date: 11/06/2020

CAN A COMPANY SPEND 100% OF ITS CSR AMOUNT THROUGH IMPLEMENTING AGENCIES- NO SAYS CSR RULES 2014
HOW MUCH CSR AMOUNT CAN BE SPENT BY A COMPANY THROUGH ITS OWN PERSONNEL OR THROUGH AN IMPLEMENTING AGENCIE IN A FINANCIAL YEAR – AN IMPORTANT CLARIFICATION 


HOW MUCH CSR AMOUNT CAN BE SPENT BY A COMPANY THROUGH AN IMPLEMENTING AGENCY
Companies ( Corporate Social Responsibility) Rules , 2004.
(1) The CSR activities shall be undertaken by the company, as per its stated CSR Policy, as projects or programs or activities (either new or ongoing), excluding activities undertaken in pursuance of its normal course of business.
(2) The Board of a company may decide to undertake its CSR activities approved by the CSR Committee, through
(a) a company established under section 8 of the Act or a registered trust or a registered society, established by the company, either singly or along with any other company, or
 (b) a company established under section 8 of the Act or a registered trust or a registered society, established by the Central Government or State Government or any entity established under an Act of Parliament or a State legislature :
Provided that- if, the Board of a company decides to undertake its CSR activities through a company established under section 8 of the Act or a registered trust or a registered society, other than those specified in this sub-rule, such company or trust or society shall have an established track record of three years in undertaking similar programs or projects; and the company has specified the projects or programs to be undertaken, the modalities of utilisation of funds of such projects and programs and the monitoring and reporting mechanism”.
(3) A company may also collaborate with other companies for undertaking projects or programs or CSR activities in such a manner that the CSR Committees of respective companies are in a position to report separately on such projects or programs in accordance with these rules.
(6) Companies may build CSR capacities of their own personnel as well as those of their Implementing agencies through Institutions with established track records of at least three financial years but such expenditure 1["including expenditure on administrative overheads,"] shall not exceed five percent of total CSR expenditure of the company in one financial year.


For instance , 2% CSR expenditure for a company comes to Rs 1 Crore , and in such case , a company may spend just 5% of Rs 1 Crore Rs 5 lacs only through its own personnel or Institutions ( section 8 company or trust or society) with the established track record of three years .
The balance of Rs 95 lacs should be spent ONLY through section 8 company or trust or society established by the company or by the Central or State governments.