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Sec. 182 of companies act, 2013

Ekta (Practicing CS) (423 Points)

18 March 2014

As per Sec. 182 of CA, 2013 "Notwithstanding anything contained in any other provision of this Act, a
company, other than a Government company and a company which has been in existence for
less than three financial years, may contribute any amount directly or indirectly to any
political party"

Now if company is in existence for 2 years, can it contribute more than 7.5% of avg profit of 2 years.. or the provision totally prohibit any company to contribute to political party fund.. no claritification for such companies in CA, 2013..

Can any exper member throw light on this issue?

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2 Replies

Anjan (Chartered Accountant) (69 Points)
Replied 18 March 2014

Hi Ekta,

As per the provisions of Sec182 of Companies Act 2013,

an company other than a

i) Government Company and ii) a company company which has been in existence for less than three financial years

may contribute any amount directly or indirectly to a political party.

It means the above mentioned companies(i&ii) are completely prohibited from contributing to any political pary fund.

Other companies can contribute to any political party, but such contribution shall not exceed 7.5% of its average net profits during the three immediately preceding financial years. and als a resolution authorising such contribution should be passed at the board of directors meeting

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