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Provision to be made in Financial statement for Unspent CSR Amount

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nilesh mehta

finance controller

22 Points Posted on 01 May 2021

Considering the Amendment in Sec 135(5), 135(6) of the Companies Act 2013 wrt the CSR, do we need to make Provision in Books of the accounts while preparing the financial statement for the year in which CSR amount is unspent.?

Replies (2)

Quick Summary

Following amendments to the Companies Act 2013 regarding CSR, companies must now make provisions in their books for any unspent CSR amounts. This unspent sum must be transferred to a specific Unspent Corporate Social Responsibility Account. Companies have three financial years to spend this amount on CSR activities; otherwise, it must be transferred to a Schedule VII Fund within 30 days of the third year's completion.

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 01 May 2021

Yes provision for CSR is mandatory

Yasaswi Gomes new

Finance

3328 Points Posted on 07 August 2023

Provision cannot be created but must be transferred to

Unspent Corporate Social Responsibility Account, and such amount shall be spent by the company in pursuance of its obligation towards the Corporate Social Responsibility Policy within a period of three financial years from the date of such transfer, failing which, the company shall transfer the same to a Fund specified in Schedule VII, within a period of thirty days from the date of completion of the third financial year.