The Ministry has been receiving several references/ representations from various stakeholders seeking clarifications on eligibility of CSR expenditure related to COVID-19 ctivities. In this regard, a set of FAQs along with clarifications are provided below for better understanding of the stakeholders:
Q. Whether contribution made to ‘PM CARES Fund’ shall qualify as CSR expenditure?
Ans. Contribution made to ‘PM CARES Fund’ shall qualify as CSR expenditure under item no (viii) of Schedule VII of the Companies Act, 2013 and it has been further clarified vide Office memorandum F. No. CSR-05/1/2020-CSR-MCA dated 28th March, 2020.
Q. Whether contribution made to ‘Chief Minister’s Relief Funds’ or ‘State Relief Fund for COVID-19’ shall qualify as CSR expenditure?
Ans. ‘Chief Minister’s Relief Fund’ or ‘State Relief Fund for COVID-19’ is not included in Schedule VII of the Companies Act, 2013 and therefore any contribution to such funds shall not qualify as admissible CSR expenditure.
Q. Whether contribution made to State Disaster Management Authority shall qualify as CSR expenditure?
Ans. Contribution made to State Disaster Management Authority to combat COVID-19 shall qualify as CSR expenditure under item no (xii) of Schedule VII of the 2013 and clarified vide general circular No. 10/2020 dated 23rd March, 2020.
The Complete FAQ’s can be accessed at: http://www.a2ztaxcorp.com/wp-content/uploads/2020/04/Notification_10042020.pdf