AKGVG MCA Update

Accounting for CSR Expenditure:

• Unspent amount not related to ongoing Projects: Along with the disclosure of the amount in Board Report, the company has to transfer the amount (doesn’t relate to any ongoing project & failure to spend) to fund specified in Schedule VII within 6 Months of close of financial year.
• Unspent amount relating to ongoing projects: The company shall transfer the amount within 30 days from the end of the financial year to a special account (Unspent corporate social Responsibility Account) to be opened by company in any scheduled bank.
• Extended time for spending of unspent amount related to ongoing project (which is transferred to UCSRA): Such amount shall be spent within a period of 3 FY from the date amount is transferred, if failing to do the same then the company has to transfer the amount to fund specified in Schedule VII within 30 days from the end of 3rd Financial year.

The registration of Implementing agency is necessary with the effect from 01/04/2021 and for registration the entities have to file Form CSR 1 from which a unique CRN Registration No shall be generated.

Form CSR-1 shall be signed and submitted electronically by the entity and shall be verified digitally by a Chartered Accountant in practice or a Company Secretary in practice or a Cost Accountant in practice.
The implementing Agency has to register under section 12A & 80 G of the Income Tax Act.