Re: Should companies get tax benefits for doing CSR?
- Respected Sirs,
I am attaching one file containing my specific observations on the issue. These were already circulated through Karmayog Foundation vide details given below:-
[karmayog-hyd] Digest Number 1345 -Saturday, December 22, 2012 7:53 AM -
of the Provisions under Section 25 of the Indian by "Thumakunta Sreerama"
I shall be highly obliged, if your good selves could kindly consider my observations on the issue duly taking up some exercises of getting the factual position examined in this behalf abour the implementation of the CSR activities by the concerned Corporates by taking the help of the Comptroller & Auditor Gneral of India and his battalion.Thanking your good selves
Yours SincerelyT.H. Sree RamaProject Founder & Managing Trustee
Global Institution for Skills & CareersDirector of Content Development & Director of Central Asia Virtual School for and on behalf of World Virtual SchoolMember of South Asian Foundation for Regional Cooperation through Education and sustainable developmentWorld Bank - Online Media Briefing Centre - Accredited JournalistMember of Subordinate Audit Service ( Under C&AG of India)
Sub: Implementation of the Provisions under Section
25 of the Indian Companies Act, 1956 amended from time to time pertaining to
Corporate Social Responsibility
a) Under the provisions contained in Section 25
of the Indian Companies Act 1956 amended from time to time, each Corporate Body
/ Company is compelled to allot funds for implementation of the Schemes /
programs under Corporate Social Responsibility Statutory Requirement;
present, such Corporate Bodies / Companies allocate funds and implement their
Social Welfare Schemes / Plans at their instance independently;
Corporate Bodies / Companies participating in the implementation of Welfare
Schemes / Plans under the above said provisions are obtaining a lot of
incentives from the side of the Government quite disproportionate to their
contributions in this behalf;
these funds remain at their disposal
facilitating the recycling of the funds for their own commercial activities
through manipulate diversion of such funds;
for Example, Sathyam Computer had been getting incentives from Government 5 to
10 times more than their contribution to social welfare under the CSR provisions. Take the case of operation 108 Ambulance, in
respect of which Sathyam’s contribution remained to the extent of 5% balance
95%being supported by the Government of India.
But the entire credit stood passed on in favour of Sathyam Computers
there by undermining the Government of India’s Contribution to the extent dof
95% in such behalf; This is just an
f) We have
to put a full stop to such kind of manipulations / diversions defeating the
very purpose of introducing the Corporate social Responsibility Clauses under
the Indian Companies Act 1956 amended from time to time;
next?! It has to be ensured that the role of these Corporate Bodies / Companies
should got confined to the extent of allotting the intended funds, the
implementation part of such Social Welfare Schemes got entrusted to the
shall be a Tripartite Committee with the Presidents Secretary being the First
Member – Secretary to the Ministry of Corporate Affairs being the Secosnd
member – An Independent dedicated NGO to be identified and entrusted with the
responsibility of monitoring the implementation of such Schemes / Plans being
the Third Member;
get allotted – Monthly Budgets are to be got prepared, submitted, approved by
this Independent NGO –funds got released to the extent of the coverage of
recurring expenses including the salaries of the respective NGO staff
pertaining to the NGOs involved in such implementation.
Accounts pertaining to each Social Welfare Plan for which Funds remain allotted
& credited to President’s Secretariat shall have to be got audited by the
Comptroller & Auditor General of India;
k) It is
only then the remaining amount lying in the account of Independent social
welfare scheme / plan should be got paid to the independent NGO through the
Third Member of the Tripartite Committee after obtaining clearance of the said
file by the Comptroller & Auditor General of India;
shall work out to be fool-proof system ensuring the utilization of the said
funds in public interest.
I shall be highly obliged, if your good selves
could kindly get my above humble submissions examined at length and in depth
for onward implementation. This matter may kindly be taken up with the Hon’ble President of India – Ministry of
Corporate Affairs & also the Comptroller & Auditor General of India
calling for their comments on the same. In so far as my personal details are
concerned, kindly visit my website: centralasia.wvs.us.com and also visit me on
face book by searching for “Thumakunta Sree Rama” where in I have been posting
my expressions of thought on diversified matters of common importance.
Through these columns, I express my individual and
institutional interests in taking up the above assignment from the side of the
Government of India taking the help of lakhs of Senior Citizens retiring from
different organizations at different levels for this specific purpose.
In this connection, I also suggest the Government
of India to take over all the Parks in Cities and Towns whether belonging to
Municipalities or Corporations or even the privately owned Housing Societies,
in as much as they are becoming the dwelling places of the beggars – drunkers –
drug addicted persons –some times – convenient centers of sexual exploitation.
These Parks can be converted into “Centers of
Social Action Activating Services”: creating an awakening in the minds of the
public at large besides conducting
classes for Yoga, Meditation, Counseling etc.,
I have also got a very big project under which a 7th
Standard English Medium passed candidates are picked up – extended one year Foundational
Course in English – Computer Fundamentals
& Internet Operations – there after getting them graduated in 3 years One
year High School Diploma – One year
Intermediate Diploma and One year Graduation Diploma. Besides this, these candidates shall be got
trained in Para Legal Volunteership – Para Social Volunteership – Basic Employability
Skills & Self Employment Skills.
All these proposals have been appreciated and given
a green signal by the World Virtual School, State of Illinois, USA by whom I
have been appointed as the Director of Content Development & also the
Director of Central Asia Virtual School.
Please visit my website: centralasia.wvs.us.com.
Indian Development Coalition for America ie./, IDCA
also has expressed its interest in having tie up with us. I am unable to launch the programme uptil now
merely because of my financial deficiencies.
Please go through these issues with a sense of
devotional commitment to the cause of the community as a whole.
A line in reply shall be highly appreciated.
Thanking your good selves
T.H. Sree Rama
Dated;12th February, 2013.