MCA Updates Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021

These rules may be called the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 They shall come into force on the date of their publication in the Official Gazette unless explicitly provided elsewhere in this notificati

DEFINITION Administrative overheads” means the expenses incurred by the company for ‘general management and administration’ of Corporate Social Responsibility functions in the company but shall not include the expenses directly incurred for the designing, implementation, monitoring, and evaluation of a particular Corporate Social Responsibility project or programme. CSR Policy” means a statement containing the approach and direction given by the board of a company, taking into account the recommendations of its CSR Committee, and includes guiding principles for selection, implementation and monitoring of activities as well as formulation of the annual action plan. “International Organization” means an organization notified by the Central Government as an international organization under section 3 of the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947), to which the provisions of the Schedule to the said Act apply. “Ongoing Project” means a multi-year project undertaken by a Company in fulfilment of its CSR obligation having timelines not exceeding three years excluding the financial year in which it was commenced, and shall include such project that was initially not approved as a multi-year project but whose duration has been extended beyond one year by the board based on reasonable justification. “Public Authority” means ‘Public Authority’ as defined in clause (h) of section 2 of the Right to Information Act, 2005. CSR IMPLEMENTATION

The Board shall ensure that the CSR activities are undertaken by the company itself or through –

√ Section 8 Company;

√ Registered Public Trust;

√ Registered Society registered u/s 12A & 80G of Income Tax Act, 1961; or

√ Company with an established track record of at least 3 years.

It shall be noted that the eligible intermediaries through which the company shall undertake the CSR Project or Programme will require to register itself with the Central Government by filing the Form CSR-1 electronically with effect from April 01, 2021. Further on filing the Form CSR-1 with the Central Government, a unique CSR Registration Number will be generated by the system automatically. International Organization as defi