Company A wants to do CSR. Can it hire company B, a PLC, as a CSR consultant? What is the maximum fees it can pay to company B? Under what head do these fees come?
1. Ordinarily speaking CSR Consultant is a consultant whose job is to provide consultation. There is no bar restricting any Company in hiring a Consultant or any purpose.
2. The Fees should be commensurate to the job done by the consultant.
3. The said expenses should be shown as towards Consultation Fees.
You can hire another company as cSR consultant
2) every company has to spend 2 per cent of net profits made during preceding three years as per CSR policy
3) company should not pay more than 5 per cent of total CSR expenditure towards administrative overheads including salaries
Yes, company can hire another company for CSR. There is no bar. Fee and other terms depends upon both parties. It could be fee or charges or remuneration.
There is no mandate in law which prescribes such kind of fees.
So it depends on the negotiation and volume of work.
For detailed, personalized advice, consider a phone consultancy.
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Thank you.
Shubham Goyal
- Yes, Company A can hire Company B, a PLC, as a CSR consultant.
- Under Section 135 of the Companies Act, 2013 , The Companies are required to spend a minimum of 2% of their net profit over the preceding three years as CSR.
A Corporate Social Responsibility (CSR) consultant is a professional who helps businesses create programs that connect the business with the community. They can be individuals or agencies. CSR consultants can help with.
The median salary for a CSR consultant in India is Rs.6,27,162 per year.
Some reports estimate that Fortune Global firms spend around $20 billion a year on CSR activities, and that more than 90 percent of the 250 largest companies in the world produce an annual CSR report. This is not too surprising, since investing in CSR appears to pay off, both in terms of sales and lobbying power.
The Board of Directors shall make sure that the company spends in every financial year, a minimum of 2% of the average net profits made during the three immediately preceding financial years as per CSR policy.
Dear Client,
In the Present Scenario, Company A may be able to hire Company B, which is a public limited company, as a CSR Consultant. With respect to the fees to be paid to Company B, the same would be considered as either consultancy or professional fees, as it is associated with CSR Activities. Further, taking into consideration the Companies Act, 2013, it mandates carrying out of CSR Activities. However, the legislation does not mandate or specify the amount to be paid for such services, but must adhere to the minimum 2% overall CSR expenditure. The fees may also be recorded under the head of CSR Expenditure, for the purposes of finance and accounting.
Hope you find this answer beneficial for resolving the dispute.
Yes it can
