Covid-19: Contribution by firms to PM-CARES Fund to qualify as CSR spending

The corporate affairs ministry, which is implementing the companies law, has issued a memorandum clarifying that money donated by corporates to the fund would be considered as CSR expenditure

Contribution by corporates to PM-CARES Fund will be considered as social welfare spending under the companies law, the government has said amid ongoing efforts to deal with the situation arising out of the coronavirus outbreak.

Under the companies law, certain classes of profitable entities have to shell out at least 2 per cent of their three-year annual average net profit towards Corporate Social Responsibility (CSR) activities in a particular fiscal.

"... any contribution made to the PM-CARES Fund shall qualify as CSR expenditure," Corporate Affairs Minister Nirmala Sitharaman said in a tweet on Sunday.

“...any contribution made to the PM CARES