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CS Professional · CSR and Social Governance · CSR Projects and Implementation Agency

Mehta Auto Ltd contributes Rs 40 lakh towards a CSR project in Gujarat through a section 8 company registered by a trust and having a 12A and 80G registration. The implementing agency has not yet registered on the MCA CSR-1 form. What is the position?

The implementing agency must first register by filing Form CSR-1 with the Registrar and get a CSR registration number. Having 12A or 80G registration does not replace this. The company should route CSR spending only through agencies holding such registration, irrespective of the amount.

  1. AThe expenditure counts, since registration with CSR-1 is optional for agencies with 12A and 80G
  2. BThe agency must have a CSR registration number obtained by filing Form CSR-1 with the Registrar; the company can count expenditure only through such registered agenciesCorrect
  3. CThe expenditure counts if the agency registers within five years
  4. DRegistration is needed only for amounts above Rs 1 crore

Explanation

Under the CSR Rules, an entity that undertakes CSR activities as an implementing agency must register by filing Form CSR-1 with the Registrar and obtain a unique CSR registration number, regardless of other registrations. Without it, the company cannot validly route CSR funds through it.

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