MCA vide circular dated 10th April, 2020 has issued Frequently Asked Questions(FAQs) to clarify and to bring more clarity on eligibility of CSR expenditure related to COVID-19 activities. It has been provided that:
Following items shall qualify for as CSR expenditure:
- Contribution made to ‘PM CARES Fund’
- Contribution made to State Disaster Management Authority to combat COVID-19
- Spending CSR funds for COVID-19 related activities shall qualify as CSR expenditure provided that the same is spent under items nos. (i) and (xii) of Schedule VII relating to promotion of health care including preventive health care and sanitation, and disaster management.
- If any ex-gratia payment is made to temporary / casual workers/ daily wage workers over and above the disbursement of wages, specifically for the purpose of fighting COVID 19, shall qualify as CSR expenditure provided there is a declaration to that effect by the Board of the company certified by the statutory auditor.
Following items shall not qualify for as CSR expenditure:
- Contribution made to “Chief Minister’s Relief Funds’ or ‘State Relief Fund for COVID-19
- Payment of salary/wages to employees and workers, including contract labour, during the lockdown is a moral obligation of the employers, as they have no alternative source of employment or livelihood during this period.
The complete circular is attached herewith: