Clarification on spending of CSR funds for setting up makeshift hospitals and temporary COVID care facilities
May 03, 2021
Ministry of Corporate Affairs (MCA) has issued a General Circular No. 05/2021 on 22nd day of April, 2021 with regard to a clarification on spending of CSR funds.
The Circular clarifies that spending of CSR funds for ‘setting up makeshift hospitals and temporary COVID care facilities’ is an eligible CSR activity under item nos. (i) and (xii) of Schedule VII of the Companies Act, 2013 relating to promotion of health care, including preventive health care and disaster management respectively.
The expenditure towards COVID care may be made by the Companies in accordance with the prescribed Companies (CSR Policy) Rules, 2014 (along with its amendments thereto).
The said Circular has been issued in continuation to the MCA’s General Circular No. 10/2020 dated 23rd day of March, 2020 wherein it was clarified that spending of CSR funds for Covid-19 is an eligible CSR activity.
The complete text of the Circular may be viewed at below link:http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo5_22042021.pdf
Last updated: 03/05/2021
Article contributed by:
Associate Director- Corporate SecretarialMBG Corporate ServicesAlso Read:-
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