The new concept of Form CSR-1 (registration of entity with Central Government), has been introduced vide notification dated 22-01-2021. Every Entity, who intends to undertake any CSR activity, shall register itself with Central government by filling Form CSR-1 electronically with Registrar w.e.f 01.04.2021.
Form CSR-1 shall be verified by a Chartered Accountant in practice or a Company Secretary in practice or a Cost Accountant in practice. On submission of form CSR-1 on the portal, a unique CSR Registration Number shall be generated by system automatically.
Implementing Agencies, to whom companies made donation, shall now register themselves with ROC by filing CSR-1. If they are not registered, such entities will not be eligible for accepting CSR Contributions from the Companies.The Board of the company shall satisfy itself that the funds so disbursed have been utilised for the purposes and in the manner as approved by it and the chief Financial Officer or the person responsible for financial management shall certify to the effect.
The administrative overheads shall not exceed five percent of total CSR expenditure of the company for the financial year.
Any surplus arising out of the CSR activities shall not form part of the business profit of a company and shall be ploughed back into the same project or shall be transferred to the Unspent CSR Account and spent in pursuance of CSR policy and annual action plan of the company or transfer such surplus amount to a Fund specified in Schedule VII, within a period of six months of the expiry of the financial year.
Board Report shall have now more stringent reporting mechanism for CSR.
Now amount spent for acquisition of capital assets to be held by implementing agencies will also be counted as CSR Expense.The board shall ensure that where a company spends an amount in excess of requirement, such excess amount to be set off against the requirement to spend up to immediate succeeding three financial years.