India Inc set to get concessions on CSR norms

Jan 31 2014, 13:19 IST
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SummaryMCA likely to accept key demand of restricting ‘2% of net profit’ clause to group level

the government may not stress on the inclusion of an independent director in the three-member CSR board. Sources added the government is also working out the modalities of factoring in the man-hours spent by company executives on social projects as legitimate work done for CSR, among others.

According to legal experts who have batted for clarifications on CSR norms, MCA has been accommodative in its approach while dealing with thousands of queries related to CSR implementation. "Overall, MCA may have received over 30,000 comments, suggestions and clarifications for various sections in the new law. But Section 135 on CSR has intrigued a large number of corporates. We get a sense that MCA may include a number of our suggestions," said a senior lawyer in a leading law firm representing a number of companies.

MCA is also expected to include the man-hours spent on voluntary social activity such as teaching and free consultations for social projects as genuine CSR activity. "In many companies, senior executives take up teaching assignments on company's time. The man-hours spent on such voluntary work may soon get counted as genuine CSR activity by assigning a value to the man-hours," said another lawyer.

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