Expenses head for social responsibility activity

[Guest]

Dear Experts

Please guide, what are the various impact of Expenses head for social responsibility activity in the final a/c.

Regard

Vikram

[Ganeshan Kalyani]

Sir i would request you to elaborate your query little more. Thanks.

[Guest]

Dear Sir, I would like to say that if we expensed on social activitis, then what are the impect of these activitis in accounting and other.

Regard

Vikram

[DR.MARIAPPAN GOVINDARAJAN]

Do you mean the Corporate Social Responsibility under the Companies Act?

[Guest]

Yes Sir..

[DR.MARIAPPAN GOVINDARAJAN]

The expenses for CSR may be spent on the thrshold amount as fixed by the Companies Act, 2013. This expenditure would not form part of the Profit and Loss Account.

[Guest]

Sir, please explain what are the impect of thease expenses.

Regad

Vikram

[Ganeshan Kalyani]

Sir, as the name suggests it is the responsibility of the company to do something for the society as per the norms given in Companies Act, 2013. Some percentage of the Net Profit is required to be spent for the purpose of Corporate Social Responsibility. Thanks

AI Summary

Understanding CSR Expenses: Companies Act 2013 Mandates Profit Allocation for Social Responsibility, Excluded from Profit and Loss Account. A user inquired about the accounting impact of expenses related to social responsibility activities under the Companies Act. Another participant clarified that such expenses, related to Corporate Social Responsibility (CSR), are governed by the Companies Act, 2013, which mandates a certain percentage of net profit to be allocated for CSR activities. These expenditures do not appear in the Profit and Loss Account. The discussion focused on understanding the implications of these expenses and their mandatory nature as per legal requirements.