SHORT NOTE – CSR- CORONA – CoVID- 19 – Chief Minister Relief Fund

SHORT NOTE – CSR- CORONA – CoVID- 19 – Chief Minister Relief Fund

Many Corporates & Professionals has asked a question “Whether spent for CORONA or CoVID-19” shall be considered as CSR u/s 135 of Companies Act, 2013?

Let’s Analyse this question with Law: -

MCA has issued a clarification on 23^rd March, 2020 vide General Circular No. 10/2020, according to such circular “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;

·       Any other way for CoVID-19

One can opine that distribution Sanitizers, Masks shall be considered as spending on CSR. Awareness programmes for CoVID shall be considered as CSR Activity. Therefore, one can opine that spent for CoVID shall be considered as CSR Activity.

Now the question arises:

Spending amount for CoVID-19 by Corporates to Chief Minister relief fund can be recognized as CSR. It is eligible as CSR activities under Companies Act, 2013?

As per above mentioned circular issued on Monday, MCA clarified that CSR funds for CoVID-19 is eligible for CSR activities. (Spent on CSR on any other way for CoVID-19).

Our Hon’ble finance minister said, in view of spread of novel coronavirus in India, its declarations as pandemic by the WHO, and decision of Govt of India to treat this as notified disaster, it is hereby clarified that spending on CSR funds for CoVID-19 is eligible for CSR activities”

Therefore, one can opine that, Spending on CoVID-19 fund by any means, whether directly, through any trust, through Chief Minister relief fund or through Prime Minister Relief fund shall be eligible for CSR.

As all the Corporates have to complete their spending on CSR on or before 31^st March, 2020 for the fy 2019-20. Therefore, it is requested to them to spend such unspent amount of CSR for CoVID-19 to help the Country. Thank you so much. Further, it is requested from all the professionals to guide the companies to spent such unspent amount for CoVID-19.

A STEP TO HELP THE COUNTRY.