MCA Proposals under Draft CSR Rules, 2020

MCA Proposals under Draft CSR Rules, 2020:

1. In case of any activity having less than 25% employees as its beneficiary, then such activity shall be deemed to be CSR activity;

2. “Ongoing Projects” means a multi-year project undertaken by a Company in fulfillment of its CSR obligation having timelines not exceeding three years;

3. Where CSR is implemented through any section 8 company or any other entity then such section 8 company or any other entity need to register itself with the central government for undertaking any CSR activity by filing the e-form CSR-1 with the ROC;

4. CFO to certify that the funds so disbursed for CSR have been utilized for the purpose;

5. The CSR amount may be spent by a company for creation or acquisition of assets which shall only be held by a company established under section 8 of the Act having charitable objects or a public authority;

6. A company having the obligation of spending average CSR amount of Rs 5 Crore or more in the three immediately preceding financial years, shall undertake impact assessment for their CSR projects or programmes, and shall disclose details of the same in its Annual Report on CSR;

7. The Central Government shall establish a fund called the “National Unspent Corporate Social Responsibility Fund”