By Rajat Arora
The Narendra Modi-led government will not let companies get away easily if they do not spend the mandated 2% of their profits on Corporate Social Responsibility (CSR) activities as specified by law. The government is planning to add more teeth to the Companies Act 2013 by introducing the penalty clause for companies that miss this target spending repeatedly. At present, non-compliance of CSRrule isn't penalized by the Companies Law, and those unable to spend the stipulated amount can get away with some justification.
Source: http://articles.economictimes.indiatimes.com/2014-09-18/news/54068278_1_mandatory-csr-spending-csr-activities-act-2013
The Narendra Modi-led government will not let companies get away easily if they do not spend the mandated 2% of their profits on Corporate Social Responsibility (CSR) activities as specified by law. The government is planning to add more teeth to the Companies Act 2013 by introducing the penalty clause for companies that miss this target spending repeatedly. At present, non-compliance of CSRrule isn't penalized by the Companies Law, and those unable to spend the stipulated amount can get away with some justification.
Source: http://articles.economictimes.indiatimes.com/2014-09-18/news/54068278_1_mandatory-csr-spending-csr-activities-act-2013
