REGISTRATION OF ENTITIES FOR UNDERTAKING CSR ACTIVITIES
- MODE OF CSR ACTIVITIES
[Rule 4(1) of Companies (Corporate Social Responsibility Policy) Rules, 2014]
A company can undertake the CSR activities in two ways:
- On its own or;
- Through any specified entity
- SPECIFIED ENTITY
- a Company established under section 8 of the Companies Act, or a registered public trust or a registered society, registered under section 12A and 80 G of the Income Tax Act, 1961, established by the Company [Rule 4(1)(a)]: or
- a company established under section 8 of the Act or a registered trust or a registered society, established by the Central Government or State Government [Rule 4(1)(b)]: or
- any entity established under an Act of Parliament or a State legislature [Rule 4(1)(c)]: or
- a Company established under section 8 of the Act, or a registered public trust or a registered society, registered under section 12A and 80G of the Income Tax Act, 1961, and having an established track record of at least three years in undertaking similar activities [Rule 4(1)(d)].
Even all above existing specified entities, need to re-register themselves with Income Tax department for such exemptions
- MANDATORY REGISTRATION FOR SPECIFIED ENTITY [Rule 4(2)]
On and after 1st April, 2021, ALL specified entity for being eligible to accept CSR Funds under Section 135 of the Companies Act, 2013, has to file e-Form CSR-1 along with prescribed documents, with the Registrar of Companies.
On submission, a unique CSR Registration Number shall be generated by the system automatically.
- CONSEQUENCES FOR NON-REGISTRATION [Based on Interpretation of Law]
- The Specified Entity will not eligible to accept CSR Donations from Corporates
- The Companies which have provided fund to unregistered specified entity will not be able to consider this contribution amount under CSR Expenditure.
At BLSC, we are facilitating lot of corporates and NGO, in CSR compliance and implementation, please feel free to revert in case if you need any further assistance in this regard.
