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Many Corporates & Professionals has asked a question ‘Whether amount spent for for prevention or Spread CORONA Virus or CoVID-19 shall be considered as CSR Expense under Section  135 of Companies Act, 2013?’

To clarify the same MCA has issued a clarification on 23rd March, 2020 vide General Circular No. 10/2020, according to which spending of CSR funds for CoVID-19 is eligible CSR activity.

Funds of CSR may be spent on various activities related to CoVID-19 like:

  • Promotion of Health Care;
  • Preventive Health Care and Sanitation;
  • Disaster management;
  • In Any other way for CoVID-19

Considering the fact that items in Schedule VII (CSR Activity Schedule) are broad based and may be interpreted liberally One can opine that amount spent on distribution of Sanitizers /Masks shall be considered as amount spent for  CSR  Activities.

Amount Spent on Awareness programmes for CoVID shall also be considered as amount spent on CSR Activity.

As all the Corporates have to complete their spending on CSR on or before 31st March, 2020 for the Financial Year 2019-20, it is requested to them to spend such unspent amount of CSR for fighting CoVID-19 to help the Country and people at large.

Further, it is requested from all the professionals to guide the companies to spend such unspent amount for activities which may help in fighting CoVID-19.

Author Bio

CS Divesh Goyal is Fellow Member of the Institute of Companies Secretaries and Practicing Company Secretary in Delhi and Steering Voice in the Corporate World. He is a competent professional having enrich post qualification experience of a decade with expertise in Corporate Law, FEMA, IBC, SEBI, View Full Profile

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  1. Sachin says:

    Hello Sir,
    If company wants to give Masks, santizers & oxymeters to DC of District in which company plant is situated.
    will it cover in CSR expenditure, if yes under which item of schedule 7?

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May 2024