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A Company is required to spend say Rs.10 on CSR in the FY 2014-15. The amount of Rs.10 is based on 2 of average PBT of the FY 2011:12, 2012:13 and 2013:14. In the FY 2014:15, the Company actually spent Rs.5 on the CSR projects identified by it and Rs.3 will be spent on the same projects in the next FY, leaving Rs.2 not to be spent by it. The Board also gives reasons for not spending Rs.2 to its shareholders. With this background, my Question is –How Companies will record the amount under CSR Pool, as it is not in the nature of “Reserve”, which can be brought back to Profit. In the given case, where the amount i.e. Rs.2 not spent will go. As per the Draft CSR Rules, surplus arising out of the CSR activity will not be part of business profits of the company. | By. DS Mahajan

CSR

Posted By: Vivek vijay 11 year(s) ago

This question has been closed if you want to answer,you have to re-open.

Expert Ankit Singhi

amount to be expended towards CSR is an expenditure and not an appropriation and therefore you need not to create any pool. The actual amount expended on CSR will be debited from the Profit & loss amount.

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