MCA: FAQs on Corporate Social Responsibility

MCA: FAQs on Corporate Social Responsibility

Aug 25, 2021

The MCA vide General Circular No. 14 /2021 dated August 25, 2021 issued Frequently Asked Questions (“FAQs”) on various issues concerning Corporate Social Responsibility (“CSR”). The broad framework of CSR has been provided in Section 135 of the Companies Act, 2013 (herein after referred as ‘the Act’), Schedule VII of the Act and Companies (CSR Policy) Rules, 2014 (herein after referred as ‘the CSR Rules’). Further, Ministry had also issued clarifications including FAQs from time to time on various issues concerning CSR. A number of significant developments have taken place since then. The Ministry has notified the amendments in Section 135 of the Act as well in the CSR Rules on January 22, 2021 with an aim to strengthen the CSR ecosystem, by improving disclosures and by simplifying compliances. In response to such amendments, Ministry has received several references and representations from stakeholders seeking clarifications on the various issues related to CSR. Accordingly, in suppression of clarifications and FAQs issued vide General Circular no. 21/2014 (dated June 18, 2014), 36/2014 (dated September 17, 2014), 01/2016 (dated January 12, 2016), 05/2016 (dated May 16 2016), clarification issued vide letter dated January 25, 2018 and General Circular no. 06/2018 (dated May 28, 2018), a set of FAQs along with response of the Ministry is provided herewith at Annexure for better understanding and facilitating effective implementation of CSR. The General Circular along with Annexure can be accessed at: https://www.mca.gov.in/bin/dms/getdocument?mds=NZCNkczg9%252BsQdrgqeBwitg%253D%253D&type=open