Certain class of profitable entities are required to spend two per cent of their three-year annual average net profit towards CSR activities.
The Union government plans to constitute a high level committee to suggest measures for proper assessment of corporate social responsibility initiatives taken by companies, says a PTI report.
Under the new companies law, certain class of profitable entities are required to shell out at least two per cent of their three-year annual average net profit towards Corporate Social Responsibility (CSR) activities.
"Government has taken a decision, in principle, to constitute a high level committee to suggest measures for proper assessment and progress of CSR initiatives by companies including government companies," Corporate Affairs Minister Arun Jaitley informed the Rajya Sabha today.
The terms of reference and composition of the proposed committee are being finalised, he said in a written reply.
He was responding to a query on whether the government is considering having a regulatory and monitoring authority to regulate and monitor CSR activities taken up by companies.
The Corporate Affairs Ministry has issued necessary clarifications from time to time to facilitate implementation of CSR by companies, Jaitley added further.
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