New Delhi, March 28 2020: Government of India on Saturday clarified that that any contribution made to the PM Cares Fund shall qualify as CSR expenditure under the Companies Act 2013.
In a bid to clear the air, Ministry of Corporate Affairs (MCA) issued a memorandum and confirmed that any contribution made to PM CARES will be considered under CSR expenditure.
As per it, the Government of India has set up the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund’ (PM CARES Fund) with the primary objective of dealing with any kind of emergency or distress situation such as that posed by COVID 19 pandemic.
Referring item no (viii) of the Schedule VII of the Companies Act, 2013, the ministry says that it enumerates activities that may be undertaken by companies in discharge of their CSR obligations. It says that any contribution to any fund set up by the Central Government for socio-economic development and relief qualifies as CSR expenditure.
It says, "The PM-CARES Fund has been set up to provide relief to those affected by any kind of emergency or distress situation. Accordingly, it is clarified that any contribution made to the PM CARES Fund shall qualify as CSR expenditure under the Companies Act 2013."
It is known that the pandemic of COVID-19 has engulfed the entire world and has posed serious challenges for the health and economic security of millions of people worldwide. In India too, the spread of coronavirus has been alarming and is posing severe health and economic ramifications for our country.
In view of this, the Prime Minister’s office claims it has been receiving spontaneous and innumerable requests for making generous donations to support the government in the wake of this emergency.
Keeping in mind the need for having a dedicated national fund with the primary objective of dealing with any kind of emergency or distress situation, like posed by the COVID-19 pandemic, and to provide relief to the affected, a public charitable trust under the name of ‘Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund’ (PM CARES Fund)’ has been set up. Prime Minister is the Chairman of this trust and its Members include Defense Minister, Home Minister and Finance Minister.
