CS Professional · CSR and Social Governance · Guidelines on CSR
Nalanda Foods Ltd failed to transfer Rs 30 lakh to a Schedule VII Fund as required. Under section 135(7), what is the maximum penalty on the company?
The company is liable to Rs 60 lakh, because the penalty is twice the amount not transferred or one crore rupees, whichever is less, and twice Rs 30 lakh is lower than one crore.
- ARs 30 lakh
- BRs 60 lakh, being twice the amount, since it is below one crore rupeesCorrect
- CRs 1 crore in all cases
- DRs 3 lakh, being one-tenth of the amount
Explanation
The company's penalty is twice the amount required to be transferred or one crore rupees, whichever is less. Twice Rs 30 lakh is Rs 60 lakh, which is below Rs 1 crore. One-tenth applies only to officers in default, subject to a Rs 2 lakh cap.
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