PM CARES Fund now eligible as CSR activity Under Schedule VII of Companies Act, 2013 By Deepali Malpani

Deepali Malpani | 6081 Views | 29 May 2020 Bookmark

CSR, COVID 19, Budget, Finance, Companies Act 2013, Corporate Law, ROC,

MCA vide Gazette Notification dated 26^th May, 2020 included Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) in Corporate Social Responsibility (CSR) Activities under Section 135 of Companies Act, 2013.

MCA vide its Office Memorandum dated 28^th March 2020, has Clarified that on contribution to PM CARES Fund as eligible CSR activity under item no. (viii) of the Schedule VII of Companies Act, 2013 to deal with distress situation such as that posed by COVID 19 pandemic. 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.

This notification shall be deemed to have come into force on 28th March, 2020.

In exercise of the powers conferred by sub section (1) of Section 467 of the companies Act, 2013, the Central Government amend Schedule VII of the said Act by inserting the following words “Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund)”after the words “Prime Minister’s National Relief Fund”.

The new amended item (viii) of Schedule VII is:

“Contribution to the prime minister's national relief fund or Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) or any other fund set up by the central govt. for socio economic development and relief and welfare of the schedule caste, tribes, other backward classes, minorities and women".