Sec. 182 of companies act, 2013

Co Act 2013 1353 views 2 replies

Ekta

Practicing CS

423 Points Posted on 18 March 2014

As per Sec. 182 of CA, 2013 "Notwithstanding anything contained in any other provision of this Act, a
company, other than a Government company and a company which has been in existence for
less than three financial years, may contribute any amount directly or indirectly to any
political party"

Now if company is in existence for 2 years, can it contribute more than 7.5% of avg profit of 2 years.. or the provision totally prohibit any company to contribute to political party fund.. no claritification for such companies in CA, 2013..

Can any exper member throw light on this issue?

Replies (2)

Anjan

Chartered Accountant

69 Points Posted on 18 March 2014

Hi Ekta,

As per the provisions of Sec182 of Companies Act 2013,

an company other than a

i) Government Company and ii) a company company which has been in existence for less than three financial years

may contribute any amount directly or indirectly to a political party.

It means the above mentioned companies(i&ii) are completely prohibited from contributing to any political pary fund.

Other companies can contribute to any political party, but such contribution shall not exceed 7.5% of its average net profits during the three immediately preceding financial years. and als a resolution authorising such contribution should be passed at the board of directors meeting