| MCA vide General Circular No. 36/2014 dated September 17, 2014 has issued a clarification with regard to provisions of Corporate Social Responsibility (CSR) under section 135 of the Companies Act, 2013 and the text of the same is reproduced below:- |
| Rule 4(6) of the Companies (Corporate Social Responsibility Policy) Rules, 2014 as notified on 27.02.2014 has been amended by notification dated 12.09.2014.
Text of rule 4(6) is:- 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, including expenditure on administrative overheads shall not exceed five percent of total CSR expenditure of the company in one financial year. Consequently, the following clarification (iv) issued wide General Circular No. 21 of 2014 dated 18.06.2014, stands omitted. Text of Omitted clarification (iv) is:- Salaries paid by the companies to regular CSR staff as well as to volunteers of the companies (in proportion to company’s time/hours spent specifically on CSR) can be factored into CSR project cost as part of the CSR expenditure. |
