Pilot to prod Chidambaram to give tax rebates on CSR

Move comes in wake of recently enacted Companies law that mandates companies to spend 2% of their average net profit of past 3 years on CSR

Ministry of Corporate Affairs (MCA) is soon expected to approach the finance ministry to incentivize industry for their corporate social responsibility (CSR) projects through tax exemption and reliefs. The move comes in the wake of the recently enacted Companies law, which mandates companies to spend 2 per cent of their average net profit of past three years on CSR activities.

Addressing an industry conference here on Thursday, Minister for Corporate Affairs Sachin Pilot said he would be happy to be the ambassador of the industry and take up with the finance Minister the demand for incentivizing CSR projects through tax exemption and reliefs.

On the ongoing payment crisis of National Spot Exchange Ltd (NSEL), Pilot said MCA is likely to take a final decision regarding its course of action in the next few days and assured action will be taken against companies violating the law. “MCA is examining NSEL’s non-compliance with the companies law and in a day or two we are going to take a final decision on what needs to be done,” Pilot said.

At a Ficci-organised even, he added that the inter-ministerial panel, headed by Economic Affairs Secretary Arvind Mayaram, which is looking into the NSEL issue, is likely to submit its report in a day or two.

NSEL is currently facing a crisis of settling Rs 5,600 crore dues to 148 members, representing 13,000 investor clients, after its trade was suspended on July 31 by government orders. Ends