With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements: 1. CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities. 2. CSR rules do

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Q: 40 (IAS/2024)
With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements:
1. CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities.
2. CSR rules do not specify minimum spending on CSR activities.
Which of the statements given above is/are correct?

question_subject: 

Polity

question_exam: 

IAS

Statement 1 is correct because CSR rules in India exclude expenditures that directly benefit the company or its employees from being considered as CSR activities. Statement 2 is incorrect because CSR rules do specify a minimum spending requirement of 2% of the company's net profit over the preceding three years on CSR activities.