India Inc today demanded tax sops on its corporate social responsibilities (CSR) spend. Endorsing the demand by companies, the Corporate Affairs Ministry is likely to take up the matter with the Finance Ministry.
“"Many corporates raised the issue of tax benefits for the amount spent on CSR activities. I will take up the issue with the Finance Ministry,” Minister for Corporate Affairs Sachin Pilot told reporters on the sidelines of an event on CSR.
When asked how soon is it likely to be discussed, Pilot said the issue has been raised today only.
The demand came at a time when the Centre is struggling to control its fiscal deficit at targeted level of 5.3% of GDP for 2012-13.
Recently, the Cabinet approved the amendments to Companies Bill making it mandatory for companies to spend on CSR or else they are required to explain the reason for not non-spending. The Amendment Bill is yet to be tabled in Parliament.