CSR funds may be spent on various activities related to COVID-19 relating to the promotion of healthcare, including preventive health care and sanitation and disaster management.
In view of the spread of novel coronavirus in India, the central government has decided to allow India Inc to use their mandatory corporate social responsibility (CSR) spending on measures to fight COVID-19. The Finance Minister Nirmala Sitharaman on Monday confirmed that spending of CSR funds for COVID-19 is eligible CSR activity.
Its declaration as a pandemic by the WHO, and the decision of the Government of India to treat this as a notified disaster, it is hereby clarified that spending of CSR funds for COVID-19 is eligible CSR activity.
The rules governing the CSR spending norms have been amended to pave the way for greater investment into activities related to COVID-19, such as the promotion of health care. This will include preventive health care and sanitization, and disaster management, as per the proposal approved by the finance ministry.
In wake of rising cases of coronavirus cases in India, many state governments have announced lockdowns of various cities to contain the outbreak of the pandemic. This has severely affected the operations of the companies and is likely to impact their profitability.
For official notification issued by MCA, click on http://www.mca.gov.in/Ministry/pdf/Covid_23032020.pdf
For information regarding CSR, refer to our article https://allroundtaxsolutions.com/corporate-social-responsibility/