SME Times News Bureau | 06 Aug, 2019
Industry body FICCI has viewed that the new recent CSR
amendment will only encourage tick -box compliance.
In an press statement FICCI said CSR is embedded in
the ethos of Indian corporate sector 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.”
FICCI added that 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 become mandatory and therefore
needs to be treated like any other business expenditure," said FICCI
President Sandip Somany.
