With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements:
1. CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities.
2. CSR rules do not specify minimum spending on CSR activities.
Which of the statements given above is/are correct?
Answer:
(a)
CA
1 CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities: This statement is correct. As per the CSR rules in India, expenditures that exclusively benefit the company itself or its employees are not considered as CSR activities. CSR activities should be directed towards social welfare, economic development, environmental sustainability, or other specified areas that benefit society at large. 2 CSR rules do not specify minimum spending on CSR activities: This statement is incorrect. The CSR rules in India do specify minimum spending requirements on CSR activities. As per the Companies Act, 2013, certain classes of companies are required to spend at least 2% of their average net profits made during the three immediately preceding financial years on CSR activities. This spending requirement is mandatory for eligible companies falling under specified criteria. https://www.civilsdaily.com/news/pib-15th-cidc-vishwakarma-awards-2024/