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:
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.