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CSR BY PRIVATE COMPANY TO SECTION 8 COMPANY

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sasank

Chartered Accountant

89 Points Posted on 27 May 2020

Hi All,

Hope all are safe and healthy.

Need a small Clarification.

Can a Private limited Company Donate a fund to Sec 8 Company as CSR Expenditure, where the Sec 8 Company is less than one year old? Is this possible or else what the consequences?

Replies (2)

Quick Summary

This discussion seeks clarification on whether a private limited company can fulfil its Corporate Social Responsibility (CSR) obligations by donating funds to a Section 8 company that is less than a year old. The query specifically addresses the track record requirement for Section 8 companies receiving CSR funds, differentiating between those incorporated by companies and those by government bodies.

Harish choursiya

Student cs professional

249 Points Posted on 27 May 2020

As far as track record (minimum 3 years) is concerned only for those section 8 co. Or registered trust or society which is not covered under CSR Rule 4(2)a and b.

A. If the section 8 co. Incorporate by company itself or with some other company or

B. Section 8 co. Is incorporated by central govt or state govt .

For the above mentioned point A and B no requirement of minimum track record.