The government has made changes to the norms governing expenses on Corporate Social Responsibility (CSR) activities under the new companies’ law.
CSR norms would be applicable on companies having at least Rs 5crore net profit, or Rs 1,000 crore turnover or Rs 500 crore net worth.
Such classes of profitable companies are required to shell out at least two per cent of their three-year annual average net profit towards CSR works.
Providing more clarity for stakeholders, the Corporate Affairs Ministry has said the five per cent cap would include “expenditure on administrative overheads”.
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