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Csr

Jatin Bajaj (CS) (2928 Points)

17 May 2016

Investment in equipment at Training or Learning centre of Company for providing Trainings to employee will fall under CSR activity as per Companies Act 2013.

Kindly revert.

Thanks in Advance.

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5 Replies

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17848 Points)
Replied 17 May 2016

No it will not fall under CSR. IT will be capacity building expenditure that is limited to the employees of hte company for the benefit fo the company, hence excluded from the purview of CSR.

Jatin Bajaj (CS) (2928 Points)
Replied 17 May 2016

Sir, Thanks for your Answer. But if thay are providing training to employees as well as external people. Then it will cover under CSR activities as per Schedule 7.? As Schedule 7 includes enhancing vocational skills. will it be covered under vocational skills ?

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17848 Points)
Replied 17 May 2016

This will qualify under CSR to the extend general public is benefitted with the training activity. Company has to quantify the number of trainees who are not the employee and not related to the employees of hte company.

Further, this should not be on site work paid trainee, otherwise it will not qualify under CSR, because in that case all such trainee will work for the company and they will be paid for that as well as stipend.

The CSR activity should be done on project basis exclusively from its manufacturing activities including inbuilt training project.