Advertise With Us

    CSR_Corporate Social responsibility calculation

    Posted By : Anuradha / Published on : 31-May-2022 05:08 AM / View : 339 / Comment : 2

    Print button
    Hello

    Does one consider profit after tax or profit before tax for applicability of CSR?
    Read more on : calculation responsibility social csrcorporate

    • Hi

      As per the CSR provisions, the 2% of the average profit is calculated as profit before tax will be calculated.

      01-06-2022 / 05:55:36 AM
      Reply
    • Dear Folks!

      As per Section 135 read with Rule 2 of The Companies (CSR Policy) Rule, 2014:

      “Net profit” means the net profit of a company as per its financial statement prepared in accordance with the applicable provisions of the Act, but shall not include the following, namely:-

      (i) any profit arising from any overseas branch or branches of the company, whether operated as a separate company or otherwise; and

      (ii) any dividend received from other companies in India, which are covered under and complying with the provisions of section 135 of the Act: Provided that in case of a foreign company covered under these rules, net profit means the net profit of such company as per profit and loss account prepared in terms of clause (a) of sub-section (1) of section 381, read with section 198 of the Act;

      In my opinion, we should consider Profit After Tax of Preceeding FY for checking applicability of CSR. However, while computing the expenditure spent on CSR, the 2% of the average profit is calculated on Profit before tax.

      13-06-2022 / 05:48:38 AM
      Reply
    Please Select File:



Other Queries from Anuradha
What's New on

Unanswered Queries
Latest Queries
Like us on Facebook
Follow Us on Twitter

We are always here to help you. Don’t hesitate to contact us anytime!

+91-9988424211 or ask@compliancecalendar.in