Section 182(3) of Companies Act 2013 deals with disclosure related to amount contributed by it to any political party during the financial year.
Reference: Section 182(3) of Companies Act, 2013
(3) Every company shall disclose in its profit and loss account any amount or amounts contributed by it to any political party during the financial year to which that account relates, giving particulars of the total amount contributed and the name of the party to which such amount has been contributed.
Explanation.—For the purposes of this section, “political party” means a political party registered under section 29A of the Representation of the People Act, 1951.
Clarification with regard to applicability of section 182(3) of the Companies Act, 2013
Ministry has received representations seeking clarification on disclosures to be made under section 182 of the companies Act, 2013. The same have been examined.
With the coming into force of the scheme relating to Electoral Trust companies in terms of section (24M) of the Income Tax Act, 1961 read with Ministry of Finance Notification
No. s.o.309(E) dated 31st January, 2013 it will be expedient to explain the requirements of disclosure on part of a company of any amount or amounts contributed by it to any
political parties under section 182(3) of the Companies Act, 2013.
It is hereby clarified as under;
(i) Companies contributing any amount or amounts to an .Electoral Trust Company’ for contributing to a political party or parties are not required to
make disclosures required under section 182(3) of Companies Act 2013. It will suffice if the Accounts of the company disclose the amount released to an
Electoral Trust Company.
(ii) Companies contributing any amount or amounts directly to a political party or parties will be required to make the disclosures laid down in section 192(3) of
the Companies Act, 2013.
(iii) Electoral Trust companies will be required to disclose all amounts received by them from other companies/sources in their Books of Accounts and also
disclose the amount or amounts contributed by them to a political party or parties as required by section 182(3) of Companies Act, 2013.