NET PROFIT FOR CSR SPENDING BE AFTER TAX PROFIT: PHD CHAMBER

NET PROFIT FOR CSR SPENDING BE AFTER TAX PROFIT: PHD CHAMBER

NET PROFIT FOR CSR SPENDING BE AFTER TAX PROFIT: PHD CHAMBER

No.PR-54
July 2, 2014
New Delhi

NET PROFIT FOR CSR SPENDING BE AFTER TAX PROFIT: PHD CHAMBER

The PHD Chamber of Commerce and Industry has urged the Ministry of Corporate Affairs emphasizing that net profit for CSR spending should be after tax profit and demanded clarity in the new Companies Act about non-inclusion of profits from foreign branches.

In addition, the Chamber has also sought that banks and NBFCs be exempted from the requirement to file board resolution pertaining to granting loans, making investments and borrowings which are in their regular course of business activities.  

It has also emphasized the need stressing that private companies be completely exempted from the requirement to file board resolutions passed in pursuance of Section 179 (3). 

At a meeting of representatives of Chambers of Commerce and professional bodies, convened at the behest of the Ministry of Corporate Affairs here today, the PHD Chamber appealed for amendments in the Companies Act 2013 to accommodate industry’s latest concerns on it.

The Chamber has also demanded for removal of any conflict between Foreign Contribution (Regulation) Act 2010 (FCRA Act) and Companies Act, 2013 in case of Indian subsidiary of a foreign company and asked for clarification to “any year” used in section 135 (1) read with rule 3 (2) of Companies (CSR Policy) Rules, 2014 which is confusing.
ENDS
Koteshwar Prasad Dobhal
Consultant (PR)