MCA issues clarification on Section 135(5) of Companies Act, 2013

General Circular No. 06/2018

F. No. 08/05/2018-CSR
Governement of India
Ministry of Corporate Affairs


5th Floor, ‘A’ Wing , Shastri Bhawan,
Dr. R.P. Road , New Delhi-110001

Dated: 28.05.2018

Subject: Clarification  with regard to provisions under section  135(5) of the Companies Act, 2013


I am directed to  say that concerns have been raised  b y some stakeholders  regarding non-compliance of the first proviso tp sub section (5) of Section 135 of the Companies Act, 2013, which lays down that the company shall be given preference  to the  local areas  and areas  around it where it operates, for spending the amount earmarked  for Corporate Social Responsibility Activities.

2. It is retirated that the above  provision has to be  followed in letter and spirit.

Yours faithfully,

(Seema Rath)

Deputy Director


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One response to “MCA issues clarification on Section 135(5) of Companies Act, 2013”

  1. Hello admin, Thanks for the well-researched and well-written post!

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