Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021
The brief summary of the amendment is detailed below:
|2||Subject||Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021|
|4||Applicability||As per rule attached|
|5||Brief description||The new concept of Form CSR-1 (registration of entity with Central Government), has been introduced.
Every Entity, who intends to undertake any CSR activity, shall register itself with Central government by filling Form CSR-1 electronically with Registrar w.e.f 01.04.2021.
Form CSR-1 shall be verified by a Chartered Accountant in practice or a Company Secretary in practice or a Cost Accountant in practice. On submission of form CSR-1 on the portal, a unique CSR Registration Number shall be generated by system automatically.
· Registration of Entities for undertaking CSR Activities *Implementing Agencies, to whom companies made donation, now to register themselves with ROC by filing CSR-1. If they are not registered, such entities will not be eligible for accepting CSR Contributions from the Companies.*
· The Board of the company shall satisfy itself that the funds so disbursed have been utilised for the purposes and in the manner as approved by it and the chief Financial Officer or the person responsible for financial management shall certify to the effect.
· Administrative Overhead can be maximum 5% of CSR Liability.
· Unspent CSR Amount to be transferred in separate account.
· Board Report to have now more stringent reporting mechanism for CSR.
· Now amount spent for acquisition of capital assets to be held by implementing agencies will also be counted as CSR Expense.
· Excess CSR Amount spent can now be carried forward for next 3 years subject to board approval and resolution to the effect to be passed.