The ministry of corporate affairs (MCA) has permitted the expenditure incurred by India Inc on awareness campaigns on the Covid-19 vaccination programme would be counted towards their mandatory Corporate Social Responsibility (CSR) expenditure.
- These would fall under the permitted CSR activities as per the seventh schedule of the Companies Act, 2013.
- In August 2020, the MCA had amended the CSR rules to permit companies engaged in research and development (R&D) activity of new vaccine, drugs and medical devices to categorise as CSR activity.
- In March 2020, the government had also allowed funds donated to the Prime Minister’s Citizen Assistance and Relief in Emergency Situations (PM CARES) Fund by corporates to be classified as CSR spends.
- Corporate Social Responsibility (CSR): All companies with a net worth of Rs 500 crore or more, a turnover of Rs 1,000 crore or more, or net profit of Rs 5 crore or more are required to spend 2 per cent of their average profit of the previous three years on CSR activities every year.
(Source: ET and Indian Express)
