The Ministry of Corporate Affairs (MCA) has vide General Circular No. 09/2021 dated 5.5.2021 clarified that spending of CSR funds for ‘creating health infrastructure for COVID care’, ‘establishment of medical oxygen generation and storage plants’ is an eligible CSR activity.
It is further clarified that spending of CSR funds for ‘creating health infrastructure for COVID care’, ‘establishment of medical oxygen generation and storage plants’, ‘manufacturing and supply of Oxygen concentrators, ventilators, cylinders and other medical equipment for countering COVID-19’ or similar such activities are eligible CSR activities 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.
Earlier, vide General Circular No. 10/2020 dated 23.03.2020 MCA clarified that spending of CSR funds for COVID-19 is an eligible CSR activity. The Circular states that funds may be spent on various activities related to COVID-19 under item nos. (i) and (xii) of Schedule VII relating to the promotion of health care, including preventive health care and sanitation, and disaster management. Further, as per General Circular No. 21/2014 dated 18.06.2014, items in Schedule VII are broad-based and may be interpreted liberally for this purpose.
On 22nd April, 2021 the MCA vide General Circular No. 05/2021 dated 22.04.2021 clarified that spending of CSR funds for ‘setting up makeshift hospitals and temporary COVID Care facilities’ is an eligible CSR activity.
The Circular further states that the companies may undertake the aforesaid activities of setting up makeshift hospitals and temporary COVID Care facilities in consultation with State Governments subject to fulfillment of Companies (CSR Policy) Rules, 2014 and the circulars related to CSR issued by this Ministry from time to time.
Read the full text of General Circular 9/2021 dated 5.5.2021 on CSR Expenditure
General Circular No. 09/2021
E-file no. CSR-01/5/2021-CSR-MCA
Government of India
Ministry of Corporate Affairs
5th Floor, ‘A’ Wing, Shastri Bhawan,
Dr. R. P. Marg, New Delhi - 110 001
Date: 5th May 2021
To,
All Stakeholders.
Subject: - Clarification on spending of CSR funds for ‘creating health infrastructure for COVID care’, ‘establishment of medical oxygen generation and storage plants’ etc.- reg.
Ma’am/Sir(s),
In continuation to this Ministry's General Circular No. 10/2020 dated 23.03.2020, wherein it was clarified that spending of CSR funds for COVID-19 is an eligible CSR activity, it is further clarified that spending of CSR funds for ‘creating health infrastructure for COVID care’, ‘establishment of medical oxygen generation and storage plants’, ‘manufacturing and supply of Oxygen concentrators, ventilators, cylinders and other medical equipment for countering COVID-19’ or similar such activities are eligible CSR activities 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.
2. Reference is also drawn to item no. (ix) of Schedule VII of the Companies Act, 2013 which permits contribution to specified research and development projects as well as contribution to public funded universities and certain Organisations engaged in conducting research in science, technology, engineering, and medicine as eligible CSR activities.
3. The companies including Government companies may undertake the activities or projects or programmes using CSR funds, directly by themselves or in collaboration as shared responsibility with other companies, subject to fulfillment of Companies (CSR Policy) Rules, 2014 and the guidelines issued by this Ministry from time to time.
4. This issues with the approval of competent authority.
Yours faithfully,
(Shobhit Srivastava)
Deputy Director (CSR Cell)
Tel: 011-23070216
Other Articles on CSR
Donation to PM CARES FUND and CM Relief Fund qualifies for CSR Expenditure amid COVID-19
Understanding CSR Expenditure and Deductions under Income Tax
Clarification issued by MCA on COVID-19 CSR expenditure
Donation to PM CARES Fund to fight COVID-19
Govt Notifies Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020
Section 80G deduction for Donation to West Bengal State Emergency Relief Fund
Deduction under section 80G for Donation to PM CARES Fund
MCA Clarifies Setting-up Makeshift Hospitals and Temporary COVID Care Facilities as CSR Activities
0 Comments