CSR Funding Rules and Regulation

CSR Funding Rules and Regulation

Filing of CSR-1 with MCA for CSR funding                             

*The Government of India has come out with a new registration for NGOs who are undertaking or desirous of undertaking CSR activities on behalf of the companies.                            

*Such registration is to be taken by filing Form CSR-1 electronically on the MCA portal.                    

*This registration can be taken by NGOs with effect from April 1, 2021.                    

*Form CSR-1 shall be signed and submitted electronically and verified by a practising CA or CS or Cost Accountant.                       

*On application, the MCA portal will automatically generate a unique CSR registration number               

*CSR funding will be available only to those NGOs that are registered with MCA.                 

                             

Documents for filing Form CSR-1                    

1. Copy of PAN Card of the NGO               

2. Mail ID and Mobile Number                  

3. Details of Governing Body Members                  

4. Copy of Registration Certificate                          

5. Digital Signature of the Authorised Person with his PAN Number                          

Following type of NGO’s are eligible to file Form CSR-1 on MCA Portal for getting CSR Funding                              

                             

(a) a company established under section 8 of the Act, or a registered public trust or a registered society, registered under section 12A and 80 G of the Income Tax Act, 1961 (43 of 1961), established by the company, either singly or along with any other company, or

(b) 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; or                             

(c) any entity established under an Act of Parliament or a State legislature; or                    

(d) 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     

“Corporate Social Responsibility (CSR)” means the activities undertaken by a Company in pursuance of its statutory obligation laid down in section 135 of the Act in accordance with the provisions contained in these rules, but shall not include the following, namely:-                             

CSR does not Includes foowings               

                             

(i) activities undertaken in pursuance of normal course of business of the company: Provided that any company engaged in research and development activity of new vaccine, drugs and medical devices in their normal course of business may undertake research and  development activity of new vaccine, drugs and medical devices related to COVID-19 for financial years 2020-21, 2021-22, 2022-23 subject to the conditions that-                            

(a) such research and development activities shall be carried out in collaboration with any of the institutes or organisations mentioned in item (ix) of Schedule VII to the Act; 

(b) details of such activity shall be disclosed separately in the Annual report on CSR included in the Board’s Report;                

(ii) any activity undertaken by the company outside India except for training of Indian sports personnel representing any State or Union territory at national level or India at international level;                        

(iii) contribution of any amount directly or indirectly to any political party under section 182 of the Act;                 

(iv) activities benefitting employees of the company as defined in clause (k) of section 2 ofvthe Code on Wages, 2019 (29 of 2019);                 

(v) activities supported by the companies on sponsorship basis for deriving marketing benefits for its products or services;                       

(vi) activities carried out for fulfilment of any other statutory obligations under any law in force in India; As per this notification from 01 April 2021 onwards, every entity, covered under sub-rule                             

(1), who intends to undertake any CSR activity, shall register itself with the Central Government by filing the Form CSR-1 electronically with the Registrar. On successfulsubmission of Form CSR-1, a unique CSR Registration Number shall be generated by system automatically.                   

             

Important points regarding filing of Form CSR-1                

*Form CSR-1 can be filed on MCA portal with effect from April 1, 2021                     

*Where the entity (Trust/ Society/ Section 8 Company) is established by any company or group of companies: Maximum 5 CIN of such companies can be provided in the Form                     

*Email ID of the entity shall be provided in Form CSR-1. The email-id shall be verified by One Time Password (OTP)                    

*The facility of sending OTP shall be enabled only after successful pre-scrutiny of the Form CSR-1.                 

*OTP can be sent to email ID against one form for maximum 10 times in a day. OTP shall be valid for 30 minutes. In case of failure, you need to download a fresh form on the same day or try OTP next day.                      

*Details of Directors/ Board of Trustees/ Chairman/ CEO/ Secretary/ Authorised representative (AR) of the entity need to be provided in the form. It should be ensured that DIN or PAN of the above is valid and associated with the entity.                 

*Maximum 10 rows shall be available for entering the particulars of Directors/ Board of Trustees/ Chairman/ CEO/ Secretary/ AR of the entity.                   

Mandatory attachments:

1.Copy of Registration Certificate of the entity and                             

2.Copy of PAN of the entity                           

But, the following further information/ documents should be kept ready in hand before filing Form CSR-1: -                        

1.Email ID of the NGO                      

2.Trust deed of Trust/ Registration Certificate of Society/ Registration Certificate of Section 8 Company                           

3.Copy of letter granting exemption under section 12A of the Income Tax Act                        

4.Copy of letter granting registration under section 80G of the Income Tax Act                      

5.Audited Financial Statements of immediately preceding three financial years                      

6.Project Report showing activities undertaken by the NGO in the earlier years                      

7.DIN/PAN of the Director of section 8 company/ Board of Trustees of the trust/ Chairman or secretary of the society                

8.Email ID of above office bearers               

9.Copy of resolution authorizing the person by the entity to sign on behalf of the entity.                    

10.Digital Signature of person authorized on behalf of the entity to sign the Form CSR-1                      

11.Engagement Letter or Authorisation Letter in favour of CA or CS or Cost Accountant who shall verify the form.                    

12.Digital Signature of CA/CS/Cost Accountant who shall verify the Form CSR-1.                      

 Who shall sign the Form CSR-1                 

The Form CSR-1 shall be digitally signed by: -                     

1.In case of Section 8 Company: - any director who is not disqualified under provisions of Companies Act, 2013                    

2.In case of Registered Public Trust: - One of the Trustee/ CEO                      

3.In case of a Registered Society: - Chairman/ CEO/ Secretary                        

4.In case of an entity established under an Act of Parliament or State Legislature: - Authorised representative on their behalf                  

It shall also be ensured that the Form is digitally verified by a Chartered Accountant/ Company Secretary/ Cost Accountant in full time practice.                          

How to download Form CSR-1 

Form CSR-1 may be downloaded from the MCA portal by following the steps as below: -               

Visit the MCA portal by clicking the above link: - http://www.mca.gov.in/MinistryV2/companyformsdownload.html                        

Scroll down page till you find “incorporation services”.                  

Download the Form with or without instruction in zip format.                    

Open the zip file.                           

Form CSR-1 will be available in fillable PDF form.                             

                             

Is Filing of Form CSR-1 compulsory                         

*Every entity (NGO) as stated above, who intends to undertake any CSR activities, shall register with the Central Government by filing Form CSR-1 electronically with the Registrar, with effect from 1st day of April, 2021.                 

*Thus, filing of Form CSR-1 is compulsory. However, the above provision shall not affect the CSR projects approved before 1st April, 2021.                    

*Form CSR-1 shall be signed and submitted electronically by the entity and shall be verified digitally by a CA or CS or Cost Accountant in practice.                     

*On submission of Form CSR-1 on the MCA portal, a unique CSR registration number shall be generated by the system automatically.                

https://csr.gov.in