No proposal to change quantum of CSR spending, says Pilot
Dec 06 2013 , New Delhi
The new companies law require certain class of firms to spend at least two per cent of their three-year annual average net profit towards Corporate Social Responsibility (CSR) activities.
"... The corporate sector has not expressed any reservations/objections for spending towards CSR and as such there is no proposal to change this percentage," Corporate Affairs Minister Sachin Pilot has said.
He made the observation in a written reply to the Lok Sabha on Thursday.
Under Section 135 of the Companies Act, 2013, certain class of entities have to spend two per cent of their average net profit made in the three immediately preceding financial years on CSR activities.
This would apply to the companies with turnover of Rs 1,000 crore and more, or networth of Rs 500 crore and more, or a net profit of Rs 5 crore and more.
Earlier, Pilot had said that the government has left the canvas wide open for the companies to decide on their own about CSR work they wish to undertake to comply with the new norms.