CSR

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KS Srikant (Querist)

02 March 2018 Eg A company named X earns a profit of Rs. 6 crore in the F.Y. 2015-16 for which it comes under CSR. Should it spend for F.Y. 2016-17 for CSR if its profit for that year is RS.4 crore, turnover and networth is less than the prescribed limit for applicability of CSR?

CS Mitesh Mehta

CS Mitesh Mehta (Expert)

03 March 2018 In your case CSR For FY 2015-16 shall be 2% of average of the annual net profit of the preceding three financial years.

CSR Expenditure for FY 2015-16 - Average of Annual net profit of the preceding 3 financial year i.e

(A) Net Profit before tax as per books of FY 2014-15
(B) Net Profit before tax as per books of FY 2013-14
(C) Net Profit before tax as per books of FY 2012-13

Total (D)
Average of annual net profit of the preceding three financial years E (D/3)
CSR Expenditure for FY 2015-16 (E*2%)

KS Srikant

KS Srikant (Querist)

03 March 2018 Thank for the reply. Should it continue to spend for CSR in F.Y.2016-17 , if it fails to attract CSR provisions like networth less than 500 crores, turnover less than 1000 crores and profit less than 5 crore

KS Srikant

KS Srikant (Querist)

03 March 2018 I would like to put my question simply. Once a company falls under CSR applicability for one F.Y., should it continue to spend for the succeeding .F.Y. also even if does not under CSR applicability for succeeding years. Does CSR applicability is a continuous process

CS Mitesh Mehta

CS Mitesh Mehta (Expert)

03 March 2018 CSR Rules provides that when a Company ceases to come under CSR criteria, even then it has to continue CSR activities for 3 years. In other words if the CSR criteria does not apply for three consecutive financial years, then the company can stop complying with the CSR regulations.

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