Dear All
There is a case in which i am stuck with and need your help to figure it out.
There is a company which is not covered under section 135 of Companies Act 2013 and is not required to spend 2% of the average net profits. However, the company is funding a project estimating 300 crores and the authorities are demanding a CSR Plan along with budgetary provision amounting to minimum 2% of the Project cost of 300 crores.
My query is how the company would spend such amount of 2% of Project Cost where in Companies Act, it must be 2% of Average Net Profits.
How such expense would be treated as CSR if the company is not hit by section 135?
Would such expense be treated as CSR but not under the provisions of Companies Act 2013?
Please help me out with this.
An early reply would be appreciated.
CAclubindia
