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Csr expenditure and suitable head

Co Act 2013 130 views 2 replies

Sandeep Rathore

Chartered Accountant

3 Points Joined July 2014

Our Company is under Obligation to Reimburse Cost of POS for Distribution of fertilizers. Govt. and company is participating in this is 50:50 Ratio. Govt. has already supplied POS to Dealers and we have received bill of vendor to pay our part. It's just to facilitate distribution of fertilizer at subsidised price.

Its not benefiting directly to company, its just a obligation.

Kindly expain weather it qualify for CSR Activity ?

Kindly suggest suitable Exp. Head for it?

CA Sandeep Rathore

Replies (2)

Madhwesh K

272 Points Joined October 2017

basic logic if CSR provision is that an activity is to be done on a "project basis" ... one major component of that project is that the objective ... objective has to be aimed towards CSR schedule of the Act.. hence, if a business activity touches some part of CSR activity it won't qualify as CSR activity, because there is no project & process by which the intention to do CSR is layed down...
(this opinion is highly subjective)