The Ministry of Corporate Affairs has issued a Circular No. 36/2014 dated 17.09.2014 making reference to the rules dated 12.09.2014 with regard to the Companies (Corporate Social Responsibility) Amendment Rules, 2014 to provide clarification with respect to the provisions of Corporate Social Responsibility and the amendment can be highlighted as follows.
1. The provisions contained in Rule 4(6) of companies (Corporate Social Responsibility) Rules, 2014 which explains that:
Companies may build CSR capacities of their own personnel as well as those of their Implementing agencies through Institutions with established track records of at least three financial years but such expenditure “including expenditure of administrative nature” shall not exceed five percent of total CSR expenditure of the company in one financial year.
2. Due to the amendment in the provision highlighted above clause no. 4 as stated below of Circular No. 21 notified on 18th June, 2014 shall be omitted.
Salaries paid by the companies to regular CSR staff as well as to volunteers of the
companies (in proportion to company™s time/hours spent specifically on CSR) can be
factored into CSR project cost as part of the CSR expenditure. (omitted)
The particulars of the above stated Circular and the Companies (Corporate Social Responsibility) Amendment Rules, 2014 can also be accessed at the link given below.