As we know contribution to PM CARES fund is eligible for CSR expenditure in case of companies. Now MCA vide notification has notified how a company needs to reflect the same in Schedule VI and under which head same would come.
The Ministry of Corporate Affairs, vide Gazette Notification dated 26 May, 2020, has made the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) eligible to receive contributions from corporate social responsibility (CSR) corpuses of corporates.
Accordingly, changes to the Companies Act has been made vide notification dated May 26, 2020. The change would come into effect retrospectively from 28 March, 2020.
After the said notification, Schedule VII of the Companies Act specifically mention’s that contributions to the PM CARES Fund would count towards a company’s CSR obligations.
The government had also previously clarified that contributions to Chief Minister’s Relief Fund and State Relief Fund for coronavirus cannot be claimed as CSR spending by companies.
The text of the MCA Notification dated 26.05.2020, is reproduced below for your information:
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:
1. 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.
To read full notification CLICK HERE.
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