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picture1_Companies Act 2013 Pdf 162056 | Csr Amendments 2021 E Book


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File: Companies Act 2013 Pdf 162056 | Csr Amendments 2021 E Book
csr amendments in companies csr amendments in companies amendment act 2020 and csr policy amendment rules 2021 the ministry of corporate affairs mca has the rules through the companies corporate ...

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              CSR AMENDMENTS 
              IN COMPANIES 
                  CSR AMENDMENTS IN COMPANIES (AMENDMENT ACT),
                  2020 AND CSR POLICY (AMENDMENT RULES), 2021
              The  Ministry  of  Corporate  Affairs  (MCA)  has     (‘the Rules’) through the Companies (Corporate
              amended  the  Companies  (Corporate  Social           Social Responsibility Policy) Amendment Rules,
              Responsibility  Policy)  Rules,  2014  through        2021 and have also notified provisions of Sub
              notification dated January 22, 2021 and notified      Section 5, 7 and 9 of Section 135 of Companies
              the major changes in the Companies (Corporate         Act 2013.
              Social Responsibility) Rules, 2014
                                              www.mbgcorp.com/in | communications@mbgcorp.com
                             INTRODUCTION OF NEW DEFINITIONS
                       3
                               MODES OF IMPLEMENTING CSR ACTIVITIES
                       4
                               CSR EXPENDITURE
             S
                               FILING OF FORM CSR-1 EFFECTIVE FROM 01
                               APRIL, 2021
             T
             N
                               IMPACT ASSESSMENT 
                       5
                               WHAT WILL NOT BE CONSIDERED AS “CSR” 
             E
             T
                               DISCLOSURES ON WEBSITE 
                       6
             N
                               CARRYFORWARD OF EXCESS CSR
                               CONTRIBUTION (SECTION 135(5))
             O
                               TRANSFER OF UNSPENT CSR AMOUNT
                               (SECTION 135 (5) and (6))
             C
              
                              RELAXATION IN CONSTITUTION OF CSR
                       7
                              COMMITTEE
             F
             O
              
             E
             L
             B
             A
             T
                           www.mbgcorp.com/in | communications@mbgcorp.com
                                                                                                                                         INTRODUCTION OF NEW
                                                                                                                                         DEFINITIONS
                                                                                                                                                                        ADMINISTRATIVE OVERHEADS
                   With the notification of these amendments, the
                   penal  provisions  for  non-compliance  of  CSR
                                                                                                                                                                       It  means  the  expenses  incurred  by  the
                                                                                                                                                                       Company  for  ‘general  management  and
                   provisions have come into force which changes
                                                                                                                                                                       administration’                of       Corporate              Social
                   the very nature of the CSR provisions. Earlier the
                                                                                                                                                                       Responsibility  functions  in  the  Company
                   provisions provide that non-spending of the CSR
                                                                                                                                                                       but shall not include the expenses directly
                   amount was required only to be reported by the
                                                                                                                                                                       incurred for the designing, implementation,
                   Company in the board’s report of the Company.
                                                                                                                                                                       monitoring,  and  evaluation  of  a  particular
                                                                                                                                                                       Corporate  Social  Responsibility  project  or
                                                                                                                                                                       programme.
                   Further, the amendment in the Rules are not just
                   limited  to  the  changes  made  in  the  CSR
                                                                                                                                                                        CSR  POLICY
                   provisions, rather, it extends to make substantial
                                                                                                                                                                       It    means  a  statement  containing  the
                   changes in the implementation of the entire CSR
                                                                                                                                                                       approach and direction given by the board
                   activity. Infact, couple of fresh concepts have also
                                                                                                                                                                       of  a  Company,  taking  into  account  the
                   been introduced in the Rules like registering of
                                                                                                                                                                       recommendations  of  its  CSR  Committee,
                   implementing  agencies  by  filing  e-form  CSR-1
                                                                                                                                                                       and        includes           guiding           principles           for
                   with the MCA, CFO certificate, mandatory impact
                                                                                                                                                                       selection,  implementation  and  monitoring
                                                                                                                                                                       of  activities  as  well  as  formulation  of  the
                   assessment.
                                                                                                                                                                       annual action plan.
                   The  following  amendments  have  been  made
                   through  the  Companies  (Corporate  Social
                                                                                                                                                                        INTERNATIONAL ORGANIZATION
                   Responsibility Policy) Amendment Rules, 2021:
                                                                                                                                                                       It  means  an  organization  notified  by  the
                                                                                                                                                                       Central  Government  as  an  international
                                                                                                                                                                       organization under section 3 of the United
                                                                                                                                                                       Nations  (Privileges  and  Immunities)  Act,
                                                                                                                                                                       1947 (46 of 1947), to which the provisions
                                                                                                                                                                       of the Schedule to the said Act apply. 
                                                                                                                                                                        ONGOING PROJECT
                                                                                                                                                                      It means a multi-year project undertaken by
                                                                                                                                                                      a Company in fulfilment of its CSR obligation
                                                                                                                                                                      having timelines not exceeding three years
                                                                                                                                                                      excluding the financial year in which it was
                                                                                                                                                                      commenced, and shall include such project
                                                                                                                                                                      that  was  initially  not  approved  as  a  multi-
                                                                                                                                                                      year  project  but  whose  duration  has  been
                                                                                                                                                                      extended  beyond  one  year  by  the  board
                                                                                                                                                                      based on reasonable justification.
                                                                                                                                                                         PUBLIC AUTHORITY
                                                                                                                                                                      It  means  ‘Public  Authority’  as  defined  in
                                                                                                                                                                      clause  (h)  of  section  2  of  the  Right  to
                                                                                                                                                                      Information Act, 2005.
                                                                              www.mbgcorp.com/in | communications@mbgcorp.com
                                                                                                                                                                                                                                                    3
           MODES OF IMPLEMENTING                                     CSR EXPENDITURE
           CSR ACTIVITIES
          The Board shall ensure that the CSR activities are
                                                                     The administrative  overhead ≤ 5% of total CSR
                                                                   1.
          undertaken by the Company itself or through –
                                                                     expenditure of the Company for the financial year
                                                                     is permitted.
               a Company established under section 8 of
               the  Companies  Act,  2013,  or  a  registered
                                                                   2.
                                                                     The  surplus  out  of  CSR  activity  was  anyway
               public   trust  or   a  registered   society,
                                                                     prohibited to form part of business profits of the
               registered  under  section  12A  and  80  G  of
                                                                     Company and shall be ploughed back into the
               the  Income  Tax  Act,  1961  (43  of  1961),
                                                                     same  project  or  shall  be  transferred  to  the
               established by the Company, either singly or
                                                                     Unspent CSR Account and spent in pursuance of
               along with any other Company, or
                                                                     CSR policy, within a period of six months of the
                                                                     expiry of the financial year.
               a Company established under section 8 of
               the  Companies  Act,  2013,  or  a  registered
                                                                     Where a Company spends an amount in excess
                                                                   3.
               trust or a registered society, established by
                                                                     of requirement, such excess amount may be set
               the    Central    Government      or    State
                                                                     off against the CSR spending requirement up to
               Government; or
                                                                     immediate  succeeding  three  financial  years
               any  entity  established  under  an  Act  of
                                                                     subject to the conditions that –
               Parliament or a State legislature; or
                                                                          i.  the  excess  amount  available  for  set  off
               a Company established under section 8 of
                                                                          shall not include the surplus arising out of
               the  Act,  or  a  registered  public  trust  or  a
                                                                          the CSR activities,
               registered society, registered under section
                                                                          ii.  the  Board  of  the  Company  shall  pass  a
               12A and 80G of the Income Tax Act, 1961,
                                                                          resolution to that effect.
               and having an established track record of
                                                                   4.The CSR amount may be spent by a Company for
               atleast  three  years  in  undertaking  similar
                                                                     creation or acquisition of a capital asset, which
               activities.
                                                                     shall be held by -
           FILING OF FORM CSR-1 EFFECTIVE
                                                                             a Company established under section 8
           FROM 01 APRIL, 2021
                                                                             of the Act, or a Registered Public Trust or
                                                                             Registered  Society,  having  charitable
                                                                             objects  and  CSR  Registration  Number
              Every  entity  who  intends  to  undertake  any  CSR
                                                                             under sub-rule (2) of rule 4; or
              activity,  shall  register  itself  with  the  Central
              Government by   filing the form CSR-1 electronically
                                                                             beneficiaries of the said CSR project, in
              with the Registrar.
                                                                             the form of self-help groups, collectives,
                                                                             entities; or
                                                                             a public authority:
              On the submission of the Form CSR-1 on the portal, a
                                                                             For existing capital assets -this has to be
              unique CSR Registration Number shall be generated
                                                                             complied  within  180  days  i.e.  by  21st
              by the system automatically.
                                                                             July, 2021 or additional period of 90 days
                                                                             with the approval of Board.
                                       www.mbgcorp.com/in | communications@mbgcorp.com
                                                                                                                          4
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...Csr amendments in companies amendment act and policy rules the ministry of corporate affairs mca has through amended social responsibility have also notified provisions sub notification dated january section major changes www mbgcorp com communications introduction new definitions modes implementing activities expenditure s filing form effective from april t n impact assessment what will not be considered as e disclosures on website carryforward excess contribution o transfer unspent amount c relaxation constitution committee f l b a administrative overheads with these penal for non compliance it means expenses incurred by company general management come into force which administration very nature earlier functions provide that spending but shall include directly was required only to reported designing implementation board report monitoring evaluation particular project or programme further are just limited made rather extends make substantial statement containing entire approach direc...

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