If such capital expenditure was incurred as part of CSR in the past, the assets need to be transferred within six months.
The recently notified CSR rules require companies to transfer any capital asset created or acquired by using CSR money to the beneficiaries of the project, charitable company or a public authority.
If such Capital expenditure was incurred as part of Corporate Social Responsibility in the past, the assets need to be transferred within six months. This deadline can be extended by a maximum of 90 days with the approval of the board after providing reasonable justification.
The Ministry of Corporate Affairs last week made significant changes to provisions on CSR activities to be undertaken by companies according to section 135 of the Companies Act, 2013.
The addition made in Rule 7 says, “The Corporate Social Responsibility a company for creation or acquisition of a capital asset, which shall be held by — a company established under section 8 of the Act, a registered public trust or registered society, having charitable objects and CSR Registration Number. Such assets can also be held by beneficiaries of the said Corporate Social Responsibility help groups, collectives, entities or a public authority.”