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FICCI statement on the new CSR requirements and penalties for non-compliance
Aug 02, 2019
The recent amendment will only encourage tick -box compliance: Sandip Somany, President, FICCI
NEW DELHI, 2 August 2019: CSR is embedded in the ethos of Indian corporatesector and after introduction of CSR provision in the Companies Act 2013, bulk of the companies have been meaningfully discharging their obligation to society. However, the new requirement of transferring unspent CSR amounts to Govt-specified funds and introduction of penalties for non-compliance vitiates the very reason for which corporate sector was entrusted with this obligation i.e. to engage with its ecosystem and help nurture it.
"CSR is not just about spending but making an impact and finding sustainable solutions. The recent amendment will only encourage tick -box compliance. It is also not aligned with the Govt�s recent measures to decriminalise non-compliance. Further, it has been a long-standing industry demand to make CSR expenditure tax-deductible. This has become even more relevant now given that the CSR obligation has becomemandatory and therefore needs to be treated like any other business expenditure," said Mr Sandip Somany, President, FICCI.