Hello Readers. This article is intended to make you all aware of the very important aspect of filing of Web Form CSR 2. Please get the same in the below paragraph.
As per the provisions of section 135(1) of the Companies Act, 2013, if you fall within any threshold limit mentioned therein, then have to do the CSR expenditure mandatorily.
Provision: As per the provisions of the Companies Act, 2013 and the explanation given in the help Kit of web Form CSR 2, it is written that “The web-Form CSR-2 is to be filed as an addendum to E-Form AOC-4 for the F.Y. 2020-21”.
Explanation of the Provision; As per the provisions of the Companies Act, 2013 and the explanation given in the help kit of CSR-2, the F.Y. 2020-21 means the year in which a Company falls in any criteria of Section 135(1) of the Companies Act, 2013, and obliged to do the CSR for that F.Y. in the next F.Y. (that is 2021-22), and reporting for that CSR expenditure incurred (that is the filing of CSR-2) is to be done in the F.Y. 2022-23 as an addendum to the E-Form AOC-4.
Let’s start with an example taking fictional numbers:
| Particulars | F.Y. 2019-20 | F.Y. 2020-21 |
| Networth | 5,64,93,146 | 10,29,95,423 |
| Turnover | 15,16,95,152 | 19,61,49,435 |
| Profit | 3,23,78,548 | 6,10,42,267 |
In our case, as per the example inclined above, we do not fall under any criteria of Section 135(1) of the Companies Act, 2013 in the F.Y. 2019-20, so we are not supposed to file the Web Form CSR-2 by March 2022. We have crossed the limit of Net Profit in the F.Y. 2020-21, for which we have spent the 2% of the average net profits made during the 3 immediately preceding financial years in the F.Y. 2021-22. So, for this, we have to file CSR in the F.Y. 2022-23 as an addendum to E-Form CSR-2, not the web Form CSR-2.
From the above, it is clear that we have to file the Web Form CSR-2 by 31.03.2022 (extended date 31.05.2022) only if the Company falls within the limits of Section 135(1) of the Companies Act, 2013 in the F.Y. 2019-20.
If a company falls within the limits of Section 135(1) of the Companies Act, 2013 in the F.Y. 2020-21 then has to file CSR 2 as an addendum to the AOC filed for the F.Y. 2021-22.
Crux:
Circumstance 1:
2019-20: Year in which the company falls within the criteria of Section 135(1).
2020-21: Year in which Company has to do the CSR Expenditure for the F.Y. 2019-20.
2021-22: Year in which Company has to file the web Form CSR-2 for Expenditure incurred in 2020-21.
Circumstance 2:
2020-21: Year in which the company falls within the criteria of Section 135(1).
2021-22: Year in which Company has to do the CSR Expenditure for the F.Y. 2020-21.
2022-23: Year in which Company has to file the CSR-2 as an addendum to AOC-4, for expenditure incurred in 2021-22.
Disclaimer: This article is written merely for informational purposes and it should not be taken as a piece of legal advice.
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