{"id":269,"date":"2020-05-20T09:47:14","date_gmt":"2020-05-20T04:17:14","guid":{"rendered":""},"modified":"2026-09-03T16:46:45","modified_gmt":"2026-09-03T16:46:45","slug":"mca-clarify-eligibility-for-csr-expenditure-in-covid-19","status":"publish","type":"post","link":"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/","title":{"rendered":"MCA clarify eligibility for CSR expenditure in Covid-19"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_86 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #1e73be;color:#1e73be\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #1e73be;color:#1e73be\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#What_is_the_mean_of_CSR\" >What is the mean of CSR?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#CSR_stands_for_Corporate_Social_Responsibility_is_a_Management_Concept_Under_which_companies_integrate_social_and_environmental_concerns_in_the_operation_of_their_businesses_and_interactions_with_their_stakeholders\" >CSR stands for Corporate Social Responsibility is a Management Concept Under which companies integrate social and environmental concerns in the operation of their businesses and interactions with their stakeholders.<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#Clarification_of_MCA_for_CSR_expenditure_eligibility_in_Covid-19\" >Clarification of MCA for CSR expenditure eligibility in Covid-19&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#Do_the_contributions_to_%E2%80%9CPM-Care_Fund%E2%80%9D_qualify_as_CSR_expenditure\" >Do the contributions to \u201cPM-Care Fund\u201d qualify as CSR expenditure?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#The_purpose_of_initiative_%E2%80%9CPM-CARES_Fund%E2%80%9D_is_only_to_provide_relief_to_all_affected_people_in_pandemic_of_covid_19_Accordingly_it_is_clarified_that_any_contribution_to_the_PM-CARES_fund_has_qualified_as_a_CSR_expenditure_under_the_Companies_Act_2013\" >The purpose of initiative \u201cPM-CARES Fund\u201d is only to provide relief to all affected people in pandemic of covid 19. Accordingly, it is clarified that any contribution to the PM-CARES fund has qualified as a CSR expenditure under the Companies Act 2013.<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#Will_contributions_to_the_%E2%80%9CChief_Ministers_Relief_Fund%E2%80%9D_or_the_%E2%80%9CState_Relief_Fund%E2%80%9D_for_COVID-19_qualify_as_CSIR_expenditure\" >Will contributions to the \u201cChief Minister&#8217;s Relief Fund\u201d or the \u201cState Relief Fund\u201d for COVID-19 qualify as CSIR expenditure?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#The_%E2%80%98Chief_Minister_Relief_Fund_or_State_Relief_Fund_for_COVID-19_is_not_included_in_Schedule_VII_of_the_Companies_Act_2013_and_hence_any_contribution_to_such_funds_will_not_qualify_as_an_allowable_CSR_expenditure\" >The &#8216;Chief Minister Relief Fund&#8217; or State Relief Fund for COVID-19 is not included in Schedule VII of the Companies Act, 2013, and hence any contribution to such funds will not qualify as an allowable CSR expenditure.<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#Does_the_contribution_of_State_Disaster_Management_Authority_qualify_as_CSR_expenditure\" >Does the contribution of State Disaster Management Authority qualify as CSR expenditure?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#MCA_clarifies_eligibility_for_CSR_expenditure_in_Covid-19_about_the_Contribution_to_the_State_Disaster_Management_Authority_to_counter_COVID-19_has_qualified_as_a_CSR_expenditure_under_item_number_xii_of_Schedule_VII_of_2013_and_clarified_the_General_Circular_No_102020_dated_March_23_2020\" >MCA clarifies eligibility for CSR expenditure in Covid-19 about the Contribution to the State Disaster Management Authority to counter COVID-19 has qualified as a CSR expenditure under item number (xii) of Schedule VII of 2013 and clarified the General Circular No. 10\/2020 dated March 23, 2020.<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#Also_read_about_MCA_clarify_to_hold_AGM_via_video_conferencing\" >Also, read about&nbsp;MCA clarify to hold AGM via video conferencing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#Does_CSR_fund_expenditure_for_COVID-19_related_activities_qualify_as_CSR_expenditure\" >Does CSR fund expenditure for COVID-19 related activities qualify as CSR expenditure?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#The_Ministry_has_clarified_the_General_Circular_No_102020_of_March_23_2020_that_spending_CSR_funds_for_COVID-19_related_activities_would_qualify_as_CSR_expenditure_It_is_further_clarified_that_funds_can_be_spent_on_various_activities_related_to_COVID-19_under_the_items_I_and_xii_of_Schedule_VII_relating_to_the_promotion_of_health_care_including_preventive_health_care_and_sanitation_and_disaster_management_Further_as_per_General_Circular_No_212014_dated_18062014_the_items_in_Schedule_VII_are_broadly_based_and_may_be_interpreted_liberally_for_this_purpose\" >The Ministry has clarified the General Circular No. 10\/2020 of March 23, 2020, that spending CSR funds for COVID-19 related activities would qualify as CSR expenditure. It is further clarified that funds can be spent on various activities related to COVID-19 under the items. (I) and (xii) of Schedule VII relating to the promotion of health care, including preventive health care and sanitation, and disaster management. Further, as per General Circular No. 21\/2014 dated 18.06.2014, the items in Schedule VII are broadly based and may be interpreted liberally for this purpose.<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#Can_the_payment_of_salarysalary_to_employees_and_workers_including_contract_labor_be_adjusted_against_the_CSR_expenditure_of_companies_during_the_lockdown_period\" >Can the payment of salary\/salary to employees and workers, including contract labor, be adjusted against the CSR expenditure of companies during the lockdown period?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#Under_normal_circumstances_payment_of_salarywages_is_a_contractual_and_statutory_obligation_of_the_company\" >Under normal circumstances, payment of salary\/wages is a contractual and statutory obligation of the company.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#Similarly_the_payment_of_salarywages_to_employees_and_workers_even_during_the_lockdown_period_is_an_ethical_obligation_of_employers_as_they_have_no_alternative_source_of_employment_or_livelihood_during_this_period\" >Similarly, the payment of salary\/wages to employees and workers even during the lockdown period is an ethical obligation of employers, as they have no alternative source of employment or livelihood during this period.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#Thus_the_payment_of_salarieswages_to_employees_and_workers_during_the_lockdown_period_including_the_imposition_of_other_social_distribution_requirements_will_not_qualify_as_an_acceptable_CSR_expense\" >Thus, the payment of salaries\/wages to employees and workers during the lockdown period (including the imposition of other social distribution requirements) will not qualify as an acceptable CSR expense.<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#Can_the_salary_pay_to_casualdaily_wage_workers_during_the_locking_period_be_adjusted_against_the_CSR_expenditure_of_the_companies\" >Can the salary pay to casual\/daily wage workers during the locking period be adjusted against the CSR expenditure of the companies?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#Temporary_or_contingent_or_daily_wage_payments_during_the_lockdown_period_are_part_of_the_ethicalhumanitariancontractual_obligations_of_the_employees_of_the_company_who_registered_with_MCA_by_company_registration_and_apply_to_all_registered_companies_irrespective_of_any_legal_obligation_for_CSR_contribution_under_Section_135_of_the_Companies_Act_2013\" >Temporary or contingent or daily wage payments during the lockdown period are part of the ethical\/humanitarian\/contractual obligations of the employees of the company who registered with MCA by company registration and apply to all registered companies irrespective of any legal obligation for CSR contribution under Section 135 of the Companies Act 2013.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#Therefore_payment_of_wages_to_temporary_or_casual_or_daily_wage_workers_during_the_lockdown_period_will_not_count_towards_CSR_expenditure\" >Therefore, payment of wages to temporary or casual or daily wage workers during the lockdown period will not count towards CSR expenditure.<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#Is_prepayment_paid_for_temporarycontingentdaily_wage_workers_qualify_as_CSR_expenses\" >Is prepayment paid for temporary\/contingent\/daily wage workers qualify as CSR expenses?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#It_is_clarified_by_MCA_If_any_prepayment_is_made_for_disbursement_of_wages_for_temporarycasual_laborers_daily_wage_laborers_and_specifically_for_fighting_COVID_19_CSR_will_be_admissible_for_expenditure_as_there_is_no_exception_for_the_company_A_clear_declaration_of_intent_by_the_board_duly_certified_by_the_statutory_auditor\" >It is clarified by MCA, If any prepayment is made for disbursement of wages for temporary\/casual laborers \/ daily wage laborers and specifically for fighting COVID 19, CSR will be admissible for expenditure, as there is no exception for the company. A clear declaration of intent by the board, duly certified by the statutory auditor.<\/a><\/li><\/ul><\/nav><\/div>\n<h5><span class=\"ez-toc-section\" id=\"What_is_the_mean_of_CSR\"><\/span><b>What is the mean of CSR?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<h6><b><br \/><\/b><\/h6>\n<h4><span class=\"ez-toc-section\" id=\"CSR_stands_for_Corporate_Social_Responsibility_is_a_Management_Concept_Under_which_companies_integrate_social_and_environmental_concerns_in_the_operation_of_their_businesses_and_interactions_with_their_stakeholders\"><\/span>CSR stands for Corporate Social Responsibility is a Management Concept Under which companies integrate social and environmental concerns in the operation of their businesses and interactions with their stakeholders.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h6><\/h6>\n<h5><span class=\"ez-toc-section\" id=\"Clarification_of_MCA_for_CSR_expenditure_eligibility_in_Covid-19\"><\/span><b>Clarification of MCA for CSR expenditure eligibility in Covid-19&nbsp;<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<h6><b><br \/><\/b><\/h6>\n<h5><span class=\"ez-toc-section\" id=\"Do_the_contributions_to_%E2%80%9CPM-Care_Fund%E2%80%9D_qualify_as_CSR_expenditure\"><\/span><b>Do the contributions to \u201cPM-Care Fund\u201d qualify as CSR expenditure?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<h6><b><br \/><\/b><\/h6>\n<h4><span class=\"ez-toc-section\" id=\"The_purpose_of_initiative_%E2%80%9CPM-CARES_Fund%E2%80%9D_is_only_to_provide_relief_to_all_affected_people_in_pandemic_of_covid_19_Accordingly_it_is_clarified_that_any_contribution_to_the_PM-CARES_fund_has_qualified_as_a_CSR_expenditure_under_the_Companies_Act_2013\"><\/span>The purpose of initiative \u201cPM-CARES Fund\u201d is only to provide relief to all affected people in pandemic of covid 19. Accordingly, it is clarified that any contribution to the PM-CARES fund has qualified as a CSR expenditure under the Companies Act 2013.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h6><\/h6>\n<h5><span class=\"ez-toc-section\" id=\"Will_contributions_to_the_%E2%80%9CChief_Ministers_Relief_Fund%E2%80%9D_or_the_%E2%80%9CState_Relief_Fund%E2%80%9D_for_COVID-19_qualify_as_CSIR_expenditure\"><\/span><b>Will contributions to the \u201cChief Minister&#8217;s Relief Fund\u201d or the \u201cState Relief Fund\u201d for COVID-19 qualify as CSIR expenditure?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<h6><b><br \/><\/b><\/h6>\n<h4><span class=\"ez-toc-section\" id=\"The_%E2%80%98Chief_Minister_Relief_Fund_or_State_Relief_Fund_for_COVID-19_is_not_included_in_Schedule_VII_of_the_Companies_Act_2013_and_hence_any_contribution_to_such_funds_will_not_qualify_as_an_allowable_CSR_expenditure\"><\/span>The &#8216;Chief Minister Relief Fund&#8217; or State Relief Fund for COVID-19 is not included in Schedule VII of the Companies Act, 2013, and hence any contribution to such funds will not qualify as an allowable CSR expenditure.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h6><\/h6>\n<h5><span class=\"ez-toc-section\" id=\"Does_the_contribution_of_State_Disaster_Management_Authority_qualify_as_CSR_expenditure\"><\/span><b>Does the contribution of State Disaster Management Authority qualify as CSR expenditure?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<h6><b><br \/><\/b><\/h6>\n<h4><span class=\"ez-toc-section\" id=\"MCA_clarifies_eligibility_for_CSR_expenditure_in_Covid-19_about_the_Contribution_to_the_State_Disaster_Management_Authority_to_counter_COVID-19_has_qualified_as_a_CSR_expenditure_under_item_number_xii_of_Schedule_VII_of_2013_and_clarified_the_General_Circular_No_102020_dated_March_23_2020\"><\/span>MCA clarifies eligibility for CSR expenditure in Covid-19 about the Contribution to the State Disaster Management Authority to counter COVID-19 has qualified as a CSR expenditure under item number (xii) of Schedule VII of 2013 and clarified the General Circular No. 10\/2020 dated March 23, 2020.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h6><\/h6>\n<h5><span class=\"ez-toc-section\" id=\"Also_read_about_MCA_clarify_to_hold_AGM_via_video_conferencing\"><\/span>Also, read about&nbsp;<a href=\"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-to-hold-agm-via-video-conferencing\" target=\"_blank\"><font color=\"#085294\">MCA clarify to hold AGM via video conferencing<\/font><\/a><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<h6><\/h6>\n<h5><span class=\"ez-toc-section\" id=\"Does_CSR_fund_expenditure_for_COVID-19_related_activities_qualify_as_CSR_expenditure\"><\/span><b>Does CSR fund expenditure for COVID-19 related activities qualify as CSR expenditure?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<h6><b><br \/><\/b><\/h6>\n<h4><span class=\"ez-toc-section\" id=\"The_Ministry_has_clarified_the_General_Circular_No_102020_of_March_23_2020_that_spending_CSR_funds_for_COVID-19_related_activities_would_qualify_as_CSR_expenditure_It_is_further_clarified_that_funds_can_be_spent_on_various_activities_related_to_COVID-19_under_the_items_I_and_xii_of_Schedule_VII_relating_to_the_promotion_of_health_care_including_preventive_health_care_and_sanitation_and_disaster_management_Further_as_per_General_Circular_No_212014_dated_18062014_the_items_in_Schedule_VII_are_broadly_based_and_may_be_interpreted_liberally_for_this_purpose\"><\/span>The Ministry has clarified the General Circular No. 10\/2020 of March 23, 2020, that spending CSR funds for COVID-19 related activities would qualify as CSR expenditure. It is further clarified that funds can be spent on various activities related to COVID-19 under the items. (I) and (xii) of Schedule VII relating to the promotion of health care, including preventive health care and sanitation, and disaster management. Further, as per General Circular No. 21\/2014 dated 18.06.2014, the items in Schedule VII are broadly based and may be interpreted liberally for this purpose.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h6><\/h6>\n<h5><span class=\"ez-toc-section\" id=\"Can_the_payment_of_salarysalary_to_employees_and_workers_including_contract_labor_be_adjusted_against_the_CSR_expenditure_of_companies_during_the_lockdown_period\"><\/span><b>Can the payment of salary\/salary to employees and workers, including contract labor, be adjusted against the CSR expenditure of companies during the lockdown period?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<h6><b><br \/><\/b><\/h6>\n<h4><span class=\"ez-toc-section\" id=\"Under_normal_circumstances_payment_of_salarywages_is_a_contractual_and_statutory_obligation_of_the_company\"><\/span>Under normal circumstances, payment of salary\/wages is a contractual and statutory obligation of the company.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h6><\/h6>\n<h4><span class=\"ez-toc-section\" id=\"Similarly_the_payment_of_salarywages_to_employees_and_workers_even_during_the_lockdown_period_is_an_ethical_obligation_of_employers_as_they_have_no_alternative_source_of_employment_or_livelihood_during_this_period\"><\/span>Similarly, the payment of salary\/wages to employees and workers even during the lockdown period is an ethical obligation of employers, as they have no alternative source of employment or livelihood during this period.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h6><\/h6>\n<h4><span class=\"ez-toc-section\" id=\"Thus_the_payment_of_salarieswages_to_employees_and_workers_during_the_lockdown_period_including_the_imposition_of_other_social_distribution_requirements_will_not_qualify_as_an_acceptable_CSR_expense\"><\/span>Thus, the payment of salaries\/wages to employees and workers during the lockdown period (including the imposition of other social distribution requirements) will not qualify as an acceptable CSR expense.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h6><\/h6>\n<h5><span class=\"ez-toc-section\" id=\"Can_the_salary_pay_to_casualdaily_wage_workers_during_the_locking_period_be_adjusted_against_the_CSR_expenditure_of_the_companies\"><\/span><b>Can the salary pay to casual\/daily wage workers during the locking period be adjusted against the CSR expenditure of the companies?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<h6><b><br \/><\/b><\/h6>\n<h4><span class=\"ez-toc-section\" id=\"Temporary_or_contingent_or_daily_wage_payments_during_the_lockdown_period_are_part_of_the_ethicalhumanitariancontractual_obligations_of_the_employees_of_the_company_who_registered_with_MCA_by_company_registration_and_apply_to_all_registered_companies_irrespective_of_any_legal_obligation_for_CSR_contribution_under_Section_135_of_the_Companies_Act_2013\"><\/span>Temporary or contingent or daily wage payments during the lockdown period are part of the ethical\/humanitarian\/contractual obligations of the employees of the company who registered with MCA by <a href=\"https:\/\/www.legalsalaah.com\/company-registration.html\" target=\"_blank\"><font color=\"#085294\">company registration<\/font><\/a> and apply to all registered companies irrespective of any legal obligation for CSR contribution under Section 135 of the Companies Act 2013.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h6><\/h6>\n<h4><span class=\"ez-toc-section\" id=\"Therefore_payment_of_wages_to_temporary_or_casual_or_daily_wage_workers_during_the_lockdown_period_will_not_count_towards_CSR_expenditure\"><\/span>Therefore, payment of wages to temporary or casual or daily wage workers during the lockdown period will not count towards CSR expenditure.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h6><\/h6>\n<h5><span class=\"ez-toc-section\" id=\"Is_prepayment_paid_for_temporarycontingentdaily_wage_workers_qualify_as_CSR_expenses\"><\/span><b>Is prepayment paid for temporary\/contingent\/daily wage workers qualify as CSR expenses?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<h6><b><br \/><\/b><\/h6>\n<h4><span class=\"ez-toc-section\" id=\"It_is_clarified_by_MCA_If_any_prepayment_is_made_for_disbursement_of_wages_for_temporarycasual_laborers_daily_wage_laborers_and_specifically_for_fighting_COVID_19_CSR_will_be_admissible_for_expenditure_as_there_is_no_exception_for_the_company_A_clear_declaration_of_intent_by_the_board_duly_certified_by_the_statutory_auditor\"><\/span>It is clarified by MCA, If any prepayment is made for disbursement of wages for temporary\/casual laborers \/ daily wage laborers and specifically for fighting COVID 19, CSR will be admissible for expenditure, as there is no exception for the company. A clear declaration of intent by the board, duly certified by the statutory auditor.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>The ministry of corporate affairs clarifies eligibility for CSR expenditure related to COVID-19 of various stakeholders.<\/p>\n","protected":false},"author":1,"featured_media":508,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-269","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-mca"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>MCA clarify eligibility for CSR expenditure in Covid-19<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MCA clarify eligibility for CSR expenditure in Covid-19\" \/>\n<meta property=\"og:description\" content=\"The ministry of corporate affairs clarifies eligibility for CSR expenditure related to COVID-19 of various stakeholders.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/\" \/>\n<meta property=\"article:published_time\" content=\"2020-05-20T04:17:14+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-09-03T16:46:45+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/localhost\/legal-salaah\/blog\/wp-content\/uploads\/2020\/05\/Clarification-of-MCA-for-CSR-expenditure-eligibility-in-Covid-19.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"LegalSalaah\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"LegalSalaah\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.legalsalaah.com\\\/blog\\\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.legalsalaah.com\\\/blog\\\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\\\/\"},\"author\":{\"name\":\"LegalSalaah\",\"@id\":\"https:\\\/\\\/www.legalsalaah.com\\\/blog\\\/#\\\/schema\\\/person\\\/c8171d059fde19e7d1f28b59a09865f0\"},\"headline\":\"MCA clarify eligibility for CSR expenditure in Covid-19\",\"datePublished\":\"2020-05-20T04:17:14+00:00\",\"dateModified\":\"2026-09-03T16:46:45+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.legalsalaah.com\\\/blog\\\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\\\/\"},\"wordCount\":591,\"image\":{\"@id\":\"https:\\\/\\\/www.legalsalaah.com\\\/blog\\\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.legalsalaah.com\\\/blog\\\/wp-content\\\/uploads\\\/2020\\\/05\\\/Clarification-of-MCA-for-CSR-expenditure-eligibility-in-Covid-19.jpg\",\"articleSection\":[\"Company \\\/ MCA\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.legalsalaah.com\\\/blog\\\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\\\/\",\"url\":\"https:\\\/\\\/www.legalsalaah.com\\\/blog\\\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\\\/\",\"name\":\"MCA clarify eligibility for CSR expenditure in Covid-19\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.legalsalaah.com\\\/blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.legalsalaah.com\\\/blog\\\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.legalsalaah.com\\\/blog\\\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.legalsalaah.com\\\/blog\\\/wp-content\\\/uploads\\\/2020\\\/05\\\/Clarification-of-MCA-for-CSR-expenditure-eligibility-in-Covid-19.jpg\",\"datePublished\":\"2020-05-20T04:17:14+00:00\",\"dateModified\":\"2026-09-03T16:46:45+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.legalsalaah.com\\\/blog\\\/#\\\/schema\\\/person\\\/c8171d059fde19e7d1f28b59a09865f0\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.legalsalaah.com\\\/blog\\\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.legalsalaah.com\\\/blog\\\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.legalsalaah.com\\\/blog\\\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.legalsalaah.com\\\/blog\\\/wp-content\\\/uploads\\\/2020\\\/05\\\/Clarification-of-MCA-for-CSR-expenditure-eligibility-in-Covid-19.jpg\",\"contentUrl\":\"https:\\\/\\\/www.legalsalaah.com\\\/blog\\\/wp-content\\\/uploads\\\/2020\\\/05\\\/Clarification-of-MCA-for-CSR-expenditure-eligibility-in-Covid-19.jpg\",\"width\":1920,\"height\":1080},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.legalsalaah.com\\\/blog\\\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.legalsalaah.com\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"MCA clarify eligibility for CSR expenditure in Covid-19\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.legalsalaah.com\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/www.legalsalaah.com\\\/blog\\\/\",\"name\":\"\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.legalsalaah.com\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.legalsalaah.com\\\/blog\\\/#\\\/schema\\\/person\\\/c8171d059fde19e7d1f28b59a09865f0\",\"name\":\"LegalSalaah\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/e56a4d088429d65c65c80db56bbcd5ac065cdbb6d7a19fdd2d0db783e7af7e36?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/e56a4d088429d65c65c80db56bbcd5ac065cdbb6d7a19fdd2d0db783e7af7e36?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/e56a4d088429d65c65c80db56bbcd5ac065cdbb6d7a19fdd2d0db783e7af7e36?s=96&d=mm&r=g\",\"caption\":\"LegalSalaah\"},\"sameAs\":[\"https:\\\/\\\/www.legalsalaah.com\\\/blog\"],\"url\":\"https:\\\/\\\/www.legalsalaah.com\\\/blog\\\/author\\\/legalsalaah\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"MCA clarify eligibility for CSR expenditure in Covid-19","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/","og_locale":"en_US","og_type":"article","og_title":"MCA clarify eligibility for CSR expenditure in Covid-19","og_description":"The ministry of corporate affairs clarifies eligibility for CSR expenditure related to COVID-19 of various stakeholders.","og_url":"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/","article_published_time":"2020-05-20T04:17:14+00:00","article_modified_time":"2026-09-03T16:46:45+00:00","og_image":[{"width":1920,"height":1080,"url":"http:\/\/localhost\/legal-salaah\/blog\/wp-content\/uploads\/2020\/05\/Clarification-of-MCA-for-CSR-expenditure-eligibility-in-Covid-19.jpg","type":"image\/jpeg"}],"author":"LegalSalaah","twitter_card":"summary_large_image","twitter_misc":{"Written by":"LegalSalaah","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#article","isPartOf":{"@id":"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/"},"author":{"name":"LegalSalaah","@id":"https:\/\/www.legalsalaah.com\/blog\/#\/schema\/person\/c8171d059fde19e7d1f28b59a09865f0"},"headline":"MCA clarify eligibility for CSR expenditure in Covid-19","datePublished":"2020-05-20T04:17:14+00:00","dateModified":"2026-09-03T16:46:45+00:00","mainEntityOfPage":{"@id":"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/"},"wordCount":591,"image":{"@id":"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#primaryimage"},"thumbnailUrl":"https:\/\/www.legalsalaah.com\/blog\/wp-content\/uploads\/2020\/05\/Clarification-of-MCA-for-CSR-expenditure-eligibility-in-Covid-19.jpg","articleSection":["Company \/ MCA"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/","url":"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/","name":"MCA clarify eligibility for CSR expenditure in Covid-19","isPartOf":{"@id":"https:\/\/www.legalsalaah.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#primaryimage"},"image":{"@id":"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#primaryimage"},"thumbnailUrl":"https:\/\/www.legalsalaah.com\/blog\/wp-content\/uploads\/2020\/05\/Clarification-of-MCA-for-CSR-expenditure-eligibility-in-Covid-19.jpg","datePublished":"2020-05-20T04:17:14+00:00","dateModified":"2026-09-03T16:46:45+00:00","author":{"@id":"https:\/\/www.legalsalaah.com\/blog\/#\/schema\/person\/c8171d059fde19e7d1f28b59a09865f0"},"breadcrumb":{"@id":"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#primaryimage","url":"https:\/\/www.legalsalaah.com\/blog\/wp-content\/uploads\/2020\/05\/Clarification-of-MCA-for-CSR-expenditure-eligibility-in-Covid-19.jpg","contentUrl":"https:\/\/www.legalsalaah.com\/blog\/wp-content\/uploads\/2020\/05\/Clarification-of-MCA-for-CSR-expenditure-eligibility-in-Covid-19.jpg","width":1920,"height":1080},{"@type":"BreadcrumbList","@id":"https:\/\/www.legalsalaah.com\/blog\/mca-clarify-eligibility-for-csr-expenditure-in-covid-19\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.legalsalaah.com\/blog\/"},{"@type":"ListItem","position":2,"name":"MCA clarify eligibility for CSR expenditure in Covid-19"}]},{"@type":"WebSite","@id":"https:\/\/www.legalsalaah.com\/blog\/#website","url":"https:\/\/www.legalsalaah.com\/blog\/","name":"","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.legalsalaah.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.legalsalaah.com\/blog\/#\/schema\/person\/c8171d059fde19e7d1f28b59a09865f0","name":"LegalSalaah","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/e56a4d088429d65c65c80db56bbcd5ac065cdbb6d7a19fdd2d0db783e7af7e36?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/e56a4d088429d65c65c80db56bbcd5ac065cdbb6d7a19fdd2d0db783e7af7e36?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/e56a4d088429d65c65c80db56bbcd5ac065cdbb6d7a19fdd2d0db783e7af7e36?s=96&d=mm&r=g","caption":"LegalSalaah"},"sameAs":["https:\/\/www.legalsalaah.com\/blog"],"url":"https:\/\/www.legalsalaah.com\/blog\/author\/legalsalaah\/"}]}},"_links":{"self":[{"href":"https:\/\/www.legalsalaah.com\/blog\/wp-json\/wp\/v2\/posts\/269","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.legalsalaah.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.legalsalaah.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.legalsalaah.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.legalsalaah.com\/blog\/wp-json\/wp\/v2\/comments?post=269"}],"version-history":[{"count":2,"href":"https:\/\/www.legalsalaah.com\/blog\/wp-json\/wp\/v2\/posts\/269\/revisions"}],"predecessor-version":[{"id":635,"href":"https:\/\/www.legalsalaah.com\/blog\/wp-json\/wp\/v2\/posts\/269\/revisions\/635"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.legalsalaah.com\/blog\/wp-json\/wp\/v2\/media\/508"}],"wp:attachment":[{"href":"https:\/\/www.legalsalaah.com\/blog\/wp-json\/wp\/v2\/media?parent=269"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.legalsalaah.com\/blog\/wp-json\/wp\/v2\/categories?post=269"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.legalsalaah.com\/blog\/wp-json\/wp\/v2\/tags?post=269"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}