Section 135 of the Companies act 2013, which Provides for Expenditure in terms of Corporate social Responsibility will be effective from 1st April 2014, which means that if a Company comes under the Provisions of Section 135, after fulfiling any of the following conditions it will have to incur Atleast 2% of the Average Net Profits Computed u/s 198 on the Basis of Average of Three Financial years immediately preceding the current financial year :
a) net worth of Rs.500 crore or more, or
b) turnover of Rs.1000 crore or more, or
c) or net profit of Rs.5.00 or more.
Moreover, if any company to which the above provisions were applicable, ceases to fulfil such conditions for a consecutive period of three financial years, they will not be rquired to follow the CSR provisions further.