In this article, we shall be discussing that what is the CSR-1 Form and what documents are required to be attached along with these form and what are the pre-requirements for the NGOs/ Trusts and Section 8 companies for filing of the CSR-1 Form
E Form CSR-1
After the publication of the Notification by Ministry of Corporate Affairs dated 22nd January 2021, the companies can make donations to only such entities which have filed the CSR-1 E Form with the Central Government through MCA21 Portal. Alternately we can say that only such entities i.e. Trusts, NGOs or the Section 8 companies can avail/ get the donations from the corporate which have filed the CSR-1 Form with the Minisry. So we can say that it is mandatory for all NGO’s which wants to raise CSR Funding to enroll with MCA w.e.f 01/04/2021.
ENTITIES ENTITLED TO FILE CSR-1 FORM
(a) A company established under section 8 of the Act, or a registered public trust or a registered society, registered under section 12A and 80 G of the Income Tax Act, 1961 (43 of 1961), established by the company, either singly or along with any other company, or
(b) A company established under section 8 of the Act or a registered trust or a registered society, established by the Central Government or State Government; or
(c) Any entity established under an Act of Parliament or a State legislature; or
(d) A company established under section 8 of the Act, or a registered public trust or a registered society, registered under section 12A and 80G of the Income Tax Act, 1961, and having an established track record of at least three years in undertaking similar activities
So we can say that any entity which has been established for the purpose of serving the society generally known as Charitable Society or Non Government Organisations Or any company incorporated under section 8 of the Companies Act specifically for CSR or for charitable purpose shall be entitled to apply the CSR-1 Form and to obtain the donations from the CSR complied companies.
But the above entities are mandatory to comply the following norms before applying the CSR-1 Form, In case the entities have not complied any of the norm, those shall not be eligible to apply the CSR-1 Form.
Following are the compliance required to be complied by the entities:
The entities must be Registered Entities as mentioned above, under the Society Registration Act, Trust Act, Companies Act or any of the State or the Central Legislature
The entities must have applied and obtained the Certificate under Section 12A of the Income Tax Act
The entities must have applied and obtained the Certificate under Section 80G of the Income Tax Act
Please Note that generally the 80G Certificate is being issued in such cases only where the societies are having a track record of 3 years and the socity has been filing its returns with Income Tax along with duly signed/ audited balance sheet from the auditor. So we can say that the societies must be having a track record of 3 years before applying to the CSR-1 Form
Documents required for Filling of CSR-1 Form: Following documents are required for filing Form CSR-1
1. Copy of PAN Card of the NGO/ Trust/ Section 8 company, duly stamped and signed by President/ Director of the Trust/ NGO/ Sec 8 Company
2. Valid Mail ID and Mobile Number any of the authorized person: The authorized representative shall receive the OTP at the mail id and mobile no. given and the OTP shall be filled thereon. The certificate shall be issued and delivered at mail id of the authorized representative, provided in the e form. So it must be valid and must relate to the society/ authorized representative.
3. Details of Directors/ Board of Trustees/ Chairman/ CEO/ Secretary/ Authorized Representatives of the entity
4. Copy of Registration Certificate of Trust/ Society/ NGO/ Company incorporated under Section 8 of Companies Act 2013/ Section 25 of Companies Act 1956, duly stamped and signed by President/ Director of the Trust/ NGO/ Sec 8 Company.
5. Copy of Certificate issued under Section 12A of the Income Tax Act, duly stamped and signed by President/ Director of the Trust/ NGO/ Sec 8 Company
6. Copy of Certificate issued under Section 80G of the Income Tax Act, duly stamped and signed by President/ Director of the Trust/ NGO/ Sec 8 Company
7. Copy of Resolution authorizing the President/ Director or any of the members of the Trust/ Society to apply for the CSR-1 Form
8. Digital Signature Certificate of the person authorized by Trust/ Society/ Company to file and sign the E Form CSR-1 digitally.
Disclaimer: The author is based at Jalandhar and is practicing company Secretary and a Certified CSR Professional. The information contained in this write up, as provided by the author, is to provide a general guidance to the intended user. The information should not be used as a substitute for specific consultations. Authors recommend that professional advice is sought before taking any action on specific issues. The author can be however contacted for further clarification at 99145-58709 or via mail at [email protected]