INDIACSR News Network
NEW DELHI: Mr Chandrajit Banerjee, Director General CII, welcomed Mr Sachin Pilot’s assurance that the Ministry of Corporate Affairs will consider and work with the Finance Ministry in allowing the 2 per cent post tax CSR spend for offset under the IT provisions so that this expense did not tantamount to be another surcharge.
The Minister’s proactive measure on this front is very appreciable. While the comply or explain provision is part of the Bill, the Minister’s initiative in getting a tax set off on the CSR spends, will come as a positive measure in boosting Industry’s sentiment on this subject.
Mr. Banerjee further mentioned that CII had all along maintained that mandatory provisioning of CSR expenses could actually be counterproductive. Indian Industry, according to various surveys, was already engaged in productive CSR activities which were not in the nature of merely writing cheques but have made true value additions to society.
“CII is happy that the Minister intends giving a free hand to Industry in working out and implementing their CSR initiatives and encouraging self-reporting of CSR activities”, CII said in the statement.
CII also welcomed the Minister’s statement to involve industry in framing the Rules related to CSR provisions under the proposed Act, so that necessary flexibilities may be incorporated in its implementation.