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    CSR are applicable on Section 8 Company

    Posted By : Shiriti / Published on : 18-Apr-2018 01:39 AM / View : 415 / Comment : 2

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    Whether provisions of CSR are applicable on Section 8 Company, if it fulfills the criteria of section 135(1) of the Act.
    Read more on : company section applicable

    • Yes!

      Section 135 of the Act reads “ Every company…….”, i.e no specific exemption is given to section 8 companies with regard to the applicability of section 135, hence section 8 companies are required to follow CSR provisions.

      But in Practical Scenario (in my view), A Section 8 Company is already created with the object of applying all its' profits for charitable purposes only; so at the year-end, if any surplus is left with the company it will be applied in the next financial year and the application of CSR provisions either becomes irrelevant as there will be No profit left with the company or it gets fulfilled automatically when company applied all its' profits for charitable purposes.

      12-11-2018 / 07:34:41 AM
      Reply
    • Thank you so much for elaboratic reply very clear.

      12-11-2018 / 07:38:36 AM
      Reply
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