Now Indian corporate is allowed to claim expenditure on COVID-19 vaccines as corporate social responsibility (CSR) spending. Spending of CSR funds for COVID-19 vaccination for persons other than the employees and their families is an eligible CSR activity.
The Ministry of Corporate Affairs (MCA) issued the clarification on Spending of Corporate Social Responsibility (CSR) Fund for COVID-19 Vaccination for person other than Employees and their families is eligible CSR activity.
The Govt. on July 30 clarified that the cost towards vaccination of the company’s employees is not considered under CSR.
“This Ministry vide General Circular No. 10/2020 dated 23.03.2020 clarified that spending of CSR funds for COVID-19 is an eligible CSR activity. In continuation to the said circular, it is further clarified that spending of CSR funds for COVID-19 vaccination for persons other than the employees and their families, is an eligible CSR activity under item no. (i) of Schedule VII of the Companies Act, 2013 relating to the promotion of health care including preventive health care, and item no. (xii) relating to disaster management.”, MCA notification dated July 30 2021 said.
“The companies may undertake the aforesaid activity subject to fulfillment of Companies (CSR Policy) Rules, 2014 and the circulars related to CSR issued by this Ministry from time to time”, the notification further added.
At present, corporates with a net worth of Rs 500 crore, or revenues exceeding Rs 1,000 crore, or net profit over Rs 5 crore, have to spend 2 percent of their average profit over the last three years on CSR programs.
General Circular No. 13/2021
E-file no. CSR – 01 / 5 / 202 1-CS R-MCA
Government of India Ministry of Corporate Affairs
5th Floor, ‘A’ Wing, Shastri Bhawan, Dr. R. P. Marg, New Delhi – 110 001
Date: 30th July 2021
To,
All Stakeholders,
Subject: Clarification on spending of CSR funds for COVID-19 vaccination – reg.
Ma’am / Sir (s),
This Ministry vide General Circular No. 10/2020 dated 23.03.2020 clarified that spending of CSR funds for COVID-19 is an eligible CSR activity. In continuation to the said circular, it is further clarified that spending of CSR funds for COVID-19 vaccination for persons other than the employees and their families, is an eligible CSR activity under item no. (i) of Schedule VII of the Companies Act, 2013 relating to promotion of health care including preventive health care and item no. (xii) relating to disaster management.
2. The companies may undertake the aforesaid activity subject to fulfillment of Companies (CSR Policy) Rules, 2014 and the circulars related to CSR issued by this Ministry from time to time.
3. This issues with the approval of competent authority.
Yours faithfully,
(Shobhit Srivastava)
Deputy Director (CSR Cell)
Copy to:
1. E Governance for uploading on MCA website
2. Guard File
