Under the section 135 of Companies Act, 2013, companies having a certain turn over and profit are required to spend at least 2% of their average net profit in the last three years.
Prime Minister Narendra Modi’s flagship programme Swachch Bharat Mission permits private and public sector companies to use their corporate social responsibility funds for improving sanitation in the country. Under section 135 of the Companies Act of 2013, profit making companies both in private and public sector are required to spend 2% of their average net profit in last three years for making positive contribution in the society.
The Union government has devised several models that can be used by states and districts to receive funds for this programme from the corporate social responsibility funds of the private and public sector companies. The Union government hasl also developed a Swachh Bharat Kosh (SBK) for channelsing the CSR money.
“Swachh Bharat Mission (Gramin) guidelines have provisions to facilitate the utilization of Corporate Social Responsibility (CSR) funds in rural sanitation activities. States and concerned districts can use these guidelines as a base to develop their own procedure to attract, receive and utilize CSR funds,” drinking water and sanitation minister Uma Bharati informed the Lok Sabha in the ongoing budget session.
Section 135 of the Companies Act, 2013, provides for companies having net worth of Rs 500 crore or more or turnover of Rs 1,000 crore or more or a net profit of Rs 5 crore or more in a financial year to spend at least 2% of the average net profits of the last 3 years for the company’s corporate social responsibility (CSR) policy.
The Union government has also established a Swachh Bharat Kosh (SBK) under the ministry of finance for channelising the individual and corporate contribution for building toilets in rural areas under the programme.
Companies can directly make payment to designated State Bank of India account administered by department of expenditure under the ministry of finance.
Details of Designated State Bank of India account of Swachh Bharat Kosh are as under:
Bank: State Bank of India. Account No: 34215500587.
IFSC Code: SBIN0000625, MICR No.: 110002014,
SWIFT Code: SBININBB373, PAN No.: AAPTS3635L