Expense on R&D for Covid-19 drugs, vax, devices will count as CSR

The CSR FAQs provide details of what would qualify as administrative overheads

Research and development of new vaccines, drugs and medical devices related to Covid-19 by companies in the normal course of business will be regarded as corporate social responsibility (CSR) for three financial years, till FY22-23, the ministry of corporate affairs (MCA) said through a document.

While activities in the normal course of business do not qualify as CSR, the exception regarding R&D for Covid drugs and vaccines is only for companies that collaborate with organisations mentioned in the item (ix) of Schedule VII in the Companies Act.

These organisations include the Indian Institute of Technology, National Laboratories and auto­nomous bodies established under