The Rights of the Deceased: Moral Rights Incidental to Copyright Law
- Vanshika Agrawal
- 2024-04-25
Whether Any Expenditure Related To Covid19 Counts As Csr? – “Keeping in view of the novel Corona Virus (COVID-19) in India……. the decision of the Government of India to treat this as a notified disaster. It is hereby clarified that spending of CSR funds for COVID-19 is eligible CSR activity.”
-Ministry of Corporate Affairs
Whether Any Expenditure Related To Covid19 Counts As Csr? – CSR or Corporate Social Responsibility is a way corporate entity gives it back to society for the welfare and the proper functioning of society. It is kind of a vicious circle where the company deals with the public, works in the environment, achieves its ecological balance, and in the end reciprocates it back to society.
Corporate Social Responsibility introduces by Section 135 of the Companies Act, 2013, along with it some amendments have been made in it in 2019. Among the various provisions mentioned in the act, the Government of India has made it mandatory for a particular class of profitable companies to contribute their profits to the welfare and the wellness of the society through CSR rules and regulations.
Should spend atleast 2% of their profits on CSR.
An amendment has introduced by the Companies (Amendment) Act, 2020 that the companies who spend less than INR 50 lakhs as the CSR amount need not necessarily form a CSR committee, and the functions in such a case may be discharged by the board of directors.
Whether Any Expenditure Related To Covid19 Counts As Csr? – As per the Companies (Amendment) Act, 2019, if a company fails to comply with the provisions of Section 135 of the Companies Act, 2013, a penalty would be imposed on the company with not less than INR 50,000 which may extend up to INR 25 lakhs. Additionally, the Act also provides for an imprisonment of up to 3 years for an officer who is in charge of the default by the company and a fine shall also be imposed which shall not be less than INR 50,000 or which may extend up to INR 5 lakhs or both.
Novel Coronavirus (COVID 19) is a disease that was discovered in November 2019 in China. It reached India in January 2020. Since then, it is spreading and affecting millions of people. As COVID 19 has been declared as Pandemic by World Health Organisation (WHO), more and more resources are required by the government to help the public to overcome this disease.
The Government of India taking action on the pandemic situation throughout the World, set up a PM Care Fund as a public charitable trust. The intention of the government to create this fund was to fulfill the need of having a dedicated national fund with the primary objective of dealing with anemergency like the COVID 19 pandemic and to provide relief to the affected. The funds collected are entirely voluntarily and the donations to the PM Care Fund would be 100% exempted under 80G of the Income Tax Act 1961.
The Ministry of Corporate Affairs on 23rd March 2020, General Circular 10/2020 extended. That all the spending of CSR funds for the COVID19 under Schedule VII of the Companies Act, 2013. Shall be considered CSR expenditure.
It is clarified that the ‘Chief Minister Relief Fund’ or ‘State Relief Fund for COVID19’ is not included in the VII Schedule of the Companies Act, 2013. Hence does not qualify as CSR expenditure.
CSR is an important tool for today’s capitalist economy. Companies should realize that corporate social responsibility and corporate social irresponsibility are two sides of the same coin. Albeit, COVID 19 is not because of any environmental damage done by any person. Human or artificial, but it nevertheless interrelates with the world. CSR expenditure does not only help the environment and society. At large but also leaves a positive brand value, increased scale of operations, and poverty alleviation.
The government has included scientific research towards COVID19 vaccines, providing quarantine facilities. Opening sanitization facilities, distribution of masks and gloves, distribution of food. And arranging of shelter for the doctors as CSR expenditure. The Government of India is extending their bit towards combating the pandemic and also is promoting the companies. To extend their hand and help to overcome the situation and trying to boost the economy.
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