CSR exemption for firms making losses; eligibility to be checked every year

CSR rules are applicable to companies with a net profit of over Rs 5 crore or networth of over Rs 500 crore or turnover of Rs 1,000 crore

Companies making losses in the immediate preceding financial year will be exempted from undertaking corporate social responsibility (CSR) activity that year if they were eligible for CSR due to their net profit, reveals the latest government notification.

Companies, however, will have to spend the carry forward or unspent CSR obligation of the previous year. This exemption will be available only to those companies eligible for CSR due to their profits.

“The eligibility of a company to do CSR has to be checked every year. Earlier if you were eligible once, the CSR obligation fell upon you for the next three