MCA has issued a general circular to release the Frequently Asked Questions (FAQs) on Corporate Social Responsibility (CSR).
The broad framework of CSR has been provided in Section 135 of the Companies Act, 2013, Schedule VII of the Act and Companies (CSR Policy) Rules, 2014. MCA had also issued clarifications including FAQs from time to time on various issues concerning CSR and also notified the amendments in Section 135 of the Act as well in the CSR Rules on 22nd January 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 18th June 2014), 36/2014 (dated 17th September 2014), 01/2016 (dated 12th January 2016) ,05/2016 (dated 16th May 2016), the clarification issued vide letter dated 25.01.2018 and General Circular no. 06/2018 (dated 28th May 2018), FAQs are for better understanding and facilitating effective implementation of CSR.
Through these FAQs, MCA has clarified issues relating to the Applicability of CSR, CSR Framework, CSR Expenditure, CSR Activities, CSR Implementation, Ongoing Project, Treatment of Unspent CSR Amount, CSR Enforcement, Impact Assessment and CSR Reporting & Disclosure.