CSR agency registration and company reporting
Trusts and institutions
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Year-end
A company funding a CSR project and an organisation delivering it have different responsibilities. TheTaxCo prepares implementing-agency registration work and company CSR computation, project reconciliation and reporting, with the role and scope identified at the start.
An agency’s registration does not establish that a particular company’s payment qualifies as CSR expenditure. The company must assess its obligation, approve eligible activities and retain evidence of how the money was used.
Company applicability and spending
Section 135 applies where the company’s immediately preceding financial year meets any of the specified thresholds: net worth of ₹500 crore, turnover of ₹1,000 crore or net profit of ₹5 crore. The spending requirement generally starts from 2% of the relevant average net profits, with statutory computation rules and specific treatment for newer companies. Companies Act, section 135.
We calculate the applicable obligation from the financial records, assess committee or board responsibilities and compare proposed activities with the permitted framework. Accounting profit, a donation budget and the CSR computation should not be assumed to be the same amount.
Implementing-agency registration
An agency review starts with its legal form, establishment history, tax registration and approval records, activity history and proposed role. Different categories have different eligibility conditions, including track-record requirements where applicable. The current CSR-1 records implementing-agency registration. Revised CSR-1 and agency categories.
The preparation includes constitution documents, governing-body particulars, relevant approvals and declarations for the category claimed. Our relevant professionals complete verification, submit the authorised application and answer authority queries. Approval remains an authority decision.
Follow each project from approval to use
The company should retain the project approval, agreement, budget, implementing-agency evidence and payment trail. The project records should then explain the activities completed, expenditure incurred and balance remaining. A payment to an agency alone does not establish that all CSR conditions have been met.
We reconcile these records project by project, distinguish ongoing and other projects, and identify issues affecting eligible expenditure, unspent funds, disclosures or further approvals. Where an independent impact assessment or utilisation certificate is required, we arrange the relevant specialist appointment and reporting work, preserving any required independence.
The 2026 CSR amendment adds provisions relating to Social Stock Exchange transactions and specified instruments. A proposed payment through that route needs its own assessment against the amended conditions. Companies (CSR Policy) Amendment Rules, 2026.
Unspent funds need their own timetable
Unspent amounts relating to qualifying ongoing projects follow the special Unspent CSR Account route, including transfer within 30 days of year-end and the statutory utilisation period. Other unspent amounts generally require transfer to a specified Schedule VII fund within six months of year-end. The project’s classification therefore affects the action and due date. Companies Act, section 135(5)–(6).
We calculate the dates from the company’s year and project position. Waiting for the annual filing can leave these earlier actions overdue.
Company reporting and handover
The reporting work includes the obligation calculation, project and expenditure reconciliation, unspent-fund schedule, Board’s Report information and applicable CSR-2 data. CSR-2 forms part of the company accounts reporting framework; the form was revised with the 2025 accounts rules. Companies (Accounts) Second Amendment Rules, 2025.
The company approves the final information and authorised signatories complete the required declarations. We complete filing and follow-up, then hand over the completed records and acknowledgements.
Related services
Email TheTaxCo, message us on WhatsApp or book a call. Include your role, the relevant financial year and whether any CSR amount remains unspent.