claiming deduction of expenditure incurred by some companies together for social activity.

[Himanshu Gupta]

situation:-

A group of 10 companies are incurring expenditure for construction of some property. after completion of construction, it will be donated to govt for serving society. we have adviced companies to form AOP for this purpose. now company is seeking our advice, regarding how they can claim deduction of this expanse. Please also advice if there is any other better alternate then AOP?

[Himanshu Gupta]

Further, clients do not want to register their AOP

[Ganeshan Kalyani]

Sir will have to check whether it is CSR.

[Himanshu Gupta]

They are constructing water dispensers for society. will this be eligible for CSR? and how will the company claim its exemption.?

[DR.MARIAPPAN GOVINDARAJAN]

The CSR may be claimed only for the expenses given in the Schedule to the Companies Act, 2013.

AI Summary

Corporate social responsibility eligibility for donated public infrastructure depends on items listed in the Companies Act schedule. Ten companies jointly funded construction of water dispensers to be donated to the government and asked whether the expenditure is deductible or qualifies as Corporate Social Responsibility; an Association of Persons was proposed but not acceptable to clients. Recorded guidance states CSR can be claimed only for expenditures specified in the Schedule to the Companies Act, 2013, and no further deduction mechanics or alternatives are provided.