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Govt amends norms; companys’ contribution to PM Cares Fund to qualify as CSR expenditure

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NEW DELHI: The federal government has amended the norms whereby contributions by corporates to the PM CARES Fund will qualify as company social duty (CSR) spending beneath the businesses legislation.
Underneath the Corporations Act, 2013, sure class of worthwhile entities are required to shell out a minimum of two per cent of their three-year annual common web revenue in the direction of CSR actions in a selected fiscal.
In March, the company affairs ministry mentioned contributions by corporations to the PM-CARES Fund could be thought-about as CSR spending. The choice by the ministry, which is implementing the Act, got here amid the coronavirus pandemic.
Extra on Covid-19

Now, the ministry has made modifications in Schedule VII of the Act to offer for the supply. Schedule VII pertains to CSR actions.
“In Schedule VII, merchandise (viii), after the phrases “Prime Minister’s Nationwide Aid Fund” the phrases “or Prime Minister’s Citizen Help and Aid in Emergency Conditions Fund (PM CARES Fund)” shall be inserted,” the ministry mentioned in a notification issued on Tuesday.
The notification could be deemed to have come into pressure on March 28, it added.
The PM CARES Fund could be utilised to take care of any emergency or misery scenario comparable to coronavirus outbreak.
Underneath part 135 of the Corporations Act, 2013, each firm having web price of a minimum of Rs 500 crore, turnover of Rs 1,000 crore or extra, or a minimal web revenue of Rs 5 crore throughout the instantly previous monetary 12 months, has to make CSR expenditure.

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