MCA vide General Circular no.06/2018 on Monday 28th May, 2018 provided clarification with regard to provisions under section 135(5) of the Companies Act,2013; wherein concerns have been raised by the stakeholders regarding non-compliance of proviso to sub-section(5) of Section 135 of the Companies Act, 2013 which lays down that the company shall give preference to the local area and the areas around it where it operates, for spending the amount earmarked for Corporate Social Responsibility activities.
It is reiterated that the above provisions has to be followed in letter and spirit.
The said Circular can be accessed from the following link:MCACircular dt.28.5.18_Clarf. relating to Sec 135(5) of Co. act,2013