Unspent CSR Fund of Trust

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This query is : Resolved

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This discussion addresses whether unspent CSR funds transferred to a trust are considered compliant with CSR regulations. According to auditors and MCA FAQs, simply disbursing funds to a trust isn't enough; the funds must be spent within the financial year to avoid penalties. The query seeks guidance on specific rulings regarding this matter for manufacturers of mobile accessories.

Vipul Acharya

Vipul Acharya (Querist)
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13 October 2021 We are manufactures of Mobile accessories and have transferred Rs. 1 Crs to a Trust for our CSR compliance now if the trust does not utilise whole fund

Will Unspent Fund paid to Trust will be considered as the appliacation of money for CSR compliance or not

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 October 2021 Funds transferred to the trust registered under CSR with MCA will be considered as application of money for CSR compliance.

Vipul Acharya

Vipul Acharya (Querist)
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14 October 2021 Dear Sir,

As per Auditors, mere disbursal of funds to trust could not be considered as compliance of CSR Liability.
Fund must be spent during the FY, otherwise liable for penalty as per FAQ's issued by MCA on 25th Aug-21

Kindly guide with rulings

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