Fighting Covid-19: Donations to CM fund won't qualify as CSR, says MCA

Ex-gratia payments to workers will be treated as CSR, provided these are over and above wages

Companies can’t claim contributions made to the Chief Minister’s Relief Fund or the State Relief Fund for Covid-19 as corporate social responsibility (CSR) spending, the Ministry of Corporate Affairs (MCA) has said.
 

These funds are not part of the Schedule VII of the Act that enumerates eligible funds under CSR, it said.
 

Also, payments made to temporary and daily wage workers during the lockdown period would not be counted as CSR as such payments are a part of “moral, humanitarian and contractual obligations of the company”, the MCA said.
 

It said any ex-gratia payment made to daily wage earners specifically