CSR - new business opportunity for social entrepreneurs
Updated: Jul 14, 2014 03:35:44pm
Bhopal, Jul 14 (KNN) The Corporate Social Responsibility (CSR), as provided in the new Companies Act, offers a new area of business for the NGOs, self-help groups and other institutions involved in the social enterprise.
The opportunities are arising not only from the private sector companies but also from the public sector units. For instance, the NHDC Ltd, a joint venture between the MP Government and the NHDC is seeking to enrol NGOs and self-help groups for carrying out CSRs.
NHDC Limited is a hydro power based company with total installed capacity of 1520 MW. “As a part of CSR NHDC intends to follow DPE guidelines on CSR and Sustainability for Central Public Sector Enterprises,” the company said in a press note.
The new Companies Act which came into effect on April 1, 2014 imposes compulsory CSR obligations upon Indian companies and foreign companies operating in India.
According to it, an entity or business that meets the specified thresholds must spend on CSR activities no less than two per cent of its average net profit for its preceding three financial years. Net profit means a company's profits as per its profit and loss account prepared in accordance with the New Act, but excludes profits from a company's operations outside India or dividends received from an Indian company that has itself met its CSR requirements.
Some of the areas for CSR funding are - ending hunger and poverty; promoting public health; supporting education; addressing gender inequality; protecting the environment; and funding cultural initiatives and the arts.
In the Union Budget, the government said that as the application of income is not allowed as deduction for the purposes of computing taxable income of a company, amount spent on CSR cannot be allowed as deduction for computing taxable income of the company. However, deductions could be allowed for certain CSR activities. (KNN/SD)
The opportunities are arising not only from the private sector companies but also from the public sector units. For instance, the NHDC Ltd, a joint venture between the MP Government and the NHDC is seeking to enrol NGOs and self-help groups for carrying out CSRs.
NHDC Limited is a hydro power based company with total installed capacity of 1520 MW. “As a part of CSR NHDC intends to follow DPE guidelines on CSR and Sustainability for Central Public Sector Enterprises,” the company said in a press note.
The new Companies Act which came into effect on April 1, 2014 imposes compulsory CSR obligations upon Indian companies and foreign companies operating in India.
According to it, an entity or business that meets the specified thresholds must spend on CSR activities no less than two per cent of its average net profit for its preceding three financial years. Net profit means a company's profits as per its profit and loss account prepared in accordance with the New Act, but excludes profits from a company's operations outside India or dividends received from an Indian company that has itself met its CSR requirements.
Some of the areas for CSR funding are - ending hunger and poverty; promoting public health; supporting education; addressing gender inequality; protecting the environment; and funding cultural initiatives and the arts.
In the Union Budget, the government said that as the application of income is not allowed as deduction for the purposes of computing taxable income of a company, amount spent on CSR cannot be allowed as deduction for computing taxable income of the company. However, deductions could be allowed for certain CSR activities. (KNN/SD)
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