Skip to content

CS Professional · CSR and Social Governance · Guidelines on CSR

Zephyr Inc, a foreign company with a place of business in India, satisfies the net profit threshold in section 135(1) in respect of its Indian business. Which statement is correct?

Section 135 applies to the foreign company, subject to any exceptions, modifications and adaptations made by rules. Section 384(2) extends it to foreign companies as it applies to companies incorporated in India, so an outright exemption is incorrect.

  1. ASection 135 never applies to foreign companies
  2. BSection 135 applies to it subject to exceptions, modifications and adaptations made by rulesCorrect
  3. COnly its Indian subsidiary is covered, never the foreign company
  4. DSection 135 applies only if it is a One Person Company

Explanation

Section 384(2) provides that section 135 applies to a foreign company as it applies to an Indian company, subject to exceptions, modifications and adaptations made by rules. So the foreign company is not exempt outright. The One Person Company reference is irrelevant.

Did you get it right without looking?

One question tells you little. A timed set on Guidelines on CSR shows your real accuracy, how long you take and where you lose marks.

Practise Guidelines on CSRFree diagnostic mock

More Guidelines on CSR questions