Question
For up to how many years can the excess CSR spending be
set off against the CSR expenditure of the succeeding financial years? Refer to the following information to answer the next 4 questions (Q 11 to Q 14) The Companies Act 2013 had introduced several new provisions which changed the face of Indian corporate business. One of such new provisions was the Corporate Social Responsibility (CSR). The concept of CSR rests on the ideology of give and take. Companies take resources in the form of raw materials, human resources etc. from the society. By performing the task of CSR activities, the companies are giving something back to the society. CSR is the integration of socially beneficial programs and practices into a corporation's business model and culture. India is one of the first countries in the world to make CSR mandatory for companies following an amendment to the Companies Act, 2013 in 2014. Under the Companies Act, businesses can invest their profits in areas such as promoting rural development in terms of healthcare, sanitation, education including skill development, environmental sustainability, etc.Solution
The excess CSR spending can be set off against the required 2% CSR expenditure up to the immediately succeeding three financial years.
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