What is Penalty for failure to spend CSR amount?
Nexa Consultancy | Startup & Finance Glossary
If a company fails to spend the required CSR amount, it must transfer the unspent amount to a specified government fund. Failure to do so can result in a penalty of twice the unspent amount or ₹1 crore, whichever is lower, on the company, and penalties on the officers.
Startup Example: A company fails to spend its CSR budget of ₹10 Lakhs and also fails to transfer it. It could face a penalty of up to ₹20 Lakhs.
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