With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements: 1. CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities. 2. CSR rules do not specify minimum spending on CSR…

Question

With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements: 1. CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities. 2. CSR rules do not specify minimum spending on CSR activities. Which of the statements given above is/are correct?

Aicharya · Accepted Answer

CSR rules under Sec. 135 of the Companies Act, 2013 explicitly exclude activities benefiting only employees or directly benefiting the company (Statement 1 correct). They mandate spending of at least 2% of average net profits of preceding three years (Statement 2 wrong).

With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements: 1…

Solution