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Contributions By Corporates To PM CARES Fund To Be Considered As CSR Activity: Centre Amends Schedule VII Of Companies Act [Read Notification]

LIVELAW NEWS NETWORK
27 May 2020 8:52 AM GMT
Contributions By Corporates To PM CARES Fund To Be Considered As CSR Activity: Centre Amends Schedule VII Of Companies Act [Read Notification]
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Contributions made by companies to PM CARES will be considered as Corporate Social Responsibility funds under the Companies Act 2013.

The Government has issued a notification amending Schedule VII of the Companies Act 2013 for this purpose. The notification shall be deemed to have come into force on 28th March, 2020.

Section 135 of the Companies Act, 2013, mandates all companies, having net worth of 500 crore, or turnover of 1000 crore or more or a net profit of 500 crore or more during a financial year to constitute a Corporate Social Responsibility ("CSR") Committee Board. The responsibilities of the Board are enumerated thereunder, with the object of ensuring that every company spends, in each financial year, at least 2% of the average net profits of the company, in pursuance of its CSR policy

The activities relating to:—(i) eradicating extreme hunger and poverty;(ii) promotion of education;(iii) promoting gender equality and empowering women; (iv) reducing child mortality and improving maternal health; (v) combating human immunodeficiency virus, acquired immune deficiency syndrome, malaria and other diseases; (vi) ensuring environmental sustainability; (vii) employment enhancing vocational skills; (viii) social business projects; (ix) contribution to the Prime Minister's National Relief Fund or any other fund set up by the Central Government or the State Governments for socio-economic development and relief and funds for the welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women and such other matters can be included by companies in their Corporate Social Responsibility Policies. 

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