Spend on CSR; file returns and get audited, says Govt
Updated: Jul 11, 2014 12:27:42pm
New Delhi, Jul 11 (KNN) A company discharging the corporate social responsibility cannot simply get away saying it has spent on the purpose; it must file returns which will be part of the auditing, the government has said.
“The Bill was passed last year and this is going to be the first year when this is going to be implemented. As I said, we will, certainly, look into the entire mechanism. But only mentioning that I have spent is not enough; this has to be and will be a necessary part of the auditing, and, hence, of the annual returns that a company files and the regulating Department will, certainly, go into that question,” Finance Minister Arun Jaitley said in the Rajya Sabha during Question Hour earlier this week.
He said the CSR is only for profit-making companies which have to pay.
“And, therefore those who earn from the society, this is ‘pay back time’ for them, and, certainly, a scrutiny that people are paying back, or, at least, the reasons that they mentioned for not having paid back are plausible reasons or not, the Department will certainly look into a mechanism to check into that,” he said.
Jaitley said from the very moment of its legislation, the view taken by the Government consistently has been that this is post-tax profit. “Therefore, you cannot spend post-tax on those activities to get another round of tax exemption”. (KNN/PC)
“The Bill was passed last year and this is going to be the first year when this is going to be implemented. As I said, we will, certainly, look into the entire mechanism. But only mentioning that I have spent is not enough; this has to be and will be a necessary part of the auditing, and, hence, of the annual returns that a company files and the regulating Department will, certainly, go into that question,” Finance Minister Arun Jaitley said in the Rajya Sabha during Question Hour earlier this week.
He said the CSR is only for profit-making companies which have to pay.
“And, therefore those who earn from the society, this is ‘pay back time’ for them, and, certainly, a scrutiny that people are paying back, or, at least, the reasons that they mentioned for not having paid back are plausible reasons or not, the Department will certainly look into a mechanism to check into that,” he said.
Jaitley said from the very moment of its legislation, the view taken by the Government consistently has been that this is post-tax profit. “Therefore, you cannot spend post-tax on those activities to get another round of tax exemption”. (KNN/PC)
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