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    CSR by Holding or Subsidiary Company

    Posted By : Juhee Goyal / Published on : 15-Apr-2023 08:15 AM / View : 196 / Comment : 1

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    Dear All!

    Whether a holding or subsidiary of a company fulfilling the criteria under section 135(1) has to comply with the provisions of section 135, even if the holding and subsidiary itself does not fulfill the criteria?
    Read more on : company subsidiary holding

    • According to Section 135 of the Companies Act, 2013, every company that meets the specified criteria of net worth, turnover or net profit is required to spend at least 2% of its average net profit of the previous three financial years on Corporate Social Responsibility (CSR) activities.

      As per the provisions of Section 135(5) of the Act, only the companies that meet the specified criteria are required to comply with the provisions of the section. Therefore, if a holding or subsidiary company does not meet the specified criteria under Section 135(1), then it is not required to comply with the provisions of Section 135.

      However, if the holding or subsidiary company is a part of a group of companies where the parent company meets the specified criteria, then the parent company must fulfill the CSR obligation for the entire group. The holding or subsidiary company may also participate in the CSR activities of the group, but it is not required to separately comply with the provisions of Section 135.

      17-04-2023 / 09:51:39 AM
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