MCA has notified the CSR amendment rules 2022, some highlights of amendment has been discussed as follows:

CONSTITUTION OF CSR COMMITTEE

Now Constitution of CSR Committee is mandatory where the Company has any amount in its “Unspent CSR Account” due to its ongoing project as per Section 135(6) of the Companies Act 2013.

ALIGNMENT OF RULE 3 WITH SECTION 135(1)

Earlier, CSR provisions once applicable in any financial year on meeting the threshold requirements, then it remained applicable for three years. CSR provisions was no longer applicable when a company ceased to meet the threshold requirements under 135(1) for three years. In this amendment, this rule 3(2) of CSR Rules has been omitted. So once CSR provisions become applicable, it will remain applicable.

WIDENING THE CATEGORY OF ENTITIES THAT CAN BE APPOINTED AS IMPLEMENTING AGENCY

Now registered public trust/ society which is exempted under section 10(23C)(iv), (v), (vi), and (via) or registered under section 12A and 80G of the Income Tax Act, 1961 can also act as implementing agency to carry out CSR Activity.

REVISION IN LIMITS OF EXPENDITURE ON IMPACT ASSESSMENT

Expenditure on impact assessment reports are now allowed to higher of 2 percent of total CSR expenditure or Rs. 50 Lakhs (earlier it was lower of 5% or 50 lakhs)

REVISED FORMAT OF ANNUAL REPORT ON CSR

CSR Reporting – Revised format of Annexure-II for the Annual Report on CSR activities to be annexed to the Board’s report.

 

CLICK HERE FOR THE NOTIFICATION

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