Ministry of Corporate Affairs vide its General Circular No.15/2020 has clarified on the payments which will be admissible as Corporate Social Responsibility ("CSR") during the COVID-19 pandemic. The said circular has brought clarity on the contributions which will be/ will not be considered as CSR expenditure.
- Contribution to PM Cares fund shall be considered to be CSR expenditure.
- Chief Minister's relief fund or State relief fund shall not be admissible as CSR expenditure.
- Contribution made to State Disaster Management Authority to combat COVID-19 shall qualify as CSR expenditure.
- Payment of Salary/Wages to employees/temporary labours during lock -down period shall not be considered to be CSR expenditure.
- Any expenditure incurred by Company relating to preventive health care, sanitation and disaster management during COVID-19 pandemic, can be treated as CSR expenditure.
Copy of said circular can be obtained at https://s3.ap-southeast-1.amazonaws.com/novojuris.com/11%20April%202020/Notification_10042020.pdf