MCA Clarification- Contribution towards PM CARES Fund will Qualify as Eligible CSR Activity
MCA vide its Office Memorandum dated 28th March 2020, has clarified that the contribution towards PM CARES Fund will be classified as eligible CSR activity under item no (viii) of Schedule VII of Companies Act, 2013 to deal with the COVID-19 Pandemic.
MCA vide its Notification dated 26th May 2020 has amended the Schedule VII of Companies Act, 2013 to insert the contribution towards PM CARES fund as eligible CSR activity under item no (viii), effective from 28th May 2020.
It is clarified that any contribution made to the PM CARES Fund shall qualify as CSR expenditure under the Companies Act 2013.
(See sections 135)
Activities which may be included by companies in their Corporate Social Responsibility Policies
Activities relating to:—
(i) eradicating extreme hunger and poverty;
(ii) promotion of education;
(iii) promoting gender equality and empowering women;
(iv) reducing child mortality and improving maternal health;
(v) combating human immunodeficiency virus, acquired immune deficiency syndrome, malaria, and other diseases;
(vi) ensuring environmental sustainability;
(vii) employment enhancing vocational skills;
(viii) social business projects;
(ix) contribution to the Prime Minister’s National Relief Fund or any other a fund set up by the Central Government or the State Governments for socio-economic development and relief and funds for the welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women; and
(x) such other matters as may be prescribed.
MINISTRY OF CORPORATE AFFAIRS
New Delhi, the 26th May 2020
G.S.R. 313(E).—In exercise of the powers conferred by sub-section (1) of section 467 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following further amendment to Schedule VII of the said Act, namely:—
In Schedule VII, item (viii), after the words “Prime Minister’s National Relief Fund”, the words “or Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund)” shall be inserted.
2. This notification shall be deemed to have come into force on 28th March 2020.