Question

An amount of 2% of the profits have to be utilized for which purpose by industries? 

Options

• Income Tax

• Corporate Social Responsibility 

• Goods and Service Tax 

• Sales Tax 

Answer 1

Corporate Social Responsibility 

Explanation:

As per the definition of OECD, Corporate responsibility involves the search for an effective ‘fit’ between businesses and the societies in which they operate. It is a company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates. A change in company law in India was made in April 2014; businesses with annual revenues of more than 10 billion rupees should give 2% of their net profit to charity.