CSR expenditure scope extended

Clarification on spending of CSR Funds

MCA has further clarified vide General Circular No. 05/2021, dated 22-April-2021 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 healthcare, including preventive health care, and, disaster management respectively.

The Companies may undertake the aforesaid activities in consultation with State Governments subject to fulfilment of Companies (CSR Policy) Rules, 2014 and various circulars issued in this regard.

MCA earlier has already clarified vide General Circular No. 10/2020 dated 23-03-2020 that spending of CSR funds for Covid-19 is an eligible CSR activity.

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