MCA Update on CSR Clarification

 *MCA Update on CSR*

Clarification on *offsetting the excess CSR spent for FY 2019-20* if company has contributed any amount to ‘PM CARES Fund’ on 31.03.2020 which is over and above the minimum amount as prescribed under section 135(5) of Cos. Act for FY 2019-20

Circular you can refer below:

E-file no. CSR-01/4/2021-CSR-MCA

Government of India

Ministry of Corporate Affairs

5th Floor, ‘A’ Wing, Shastri Bhawan,

Dr. R. P. Marg, New Delhi-110001

Dated: 20th May 2021

Circular

To,

All concerned stakeholders.

Subject: Clarification on offsetting the excess CSR spent for FY 

2019-20 - reg.

Madam/ Sir,

Keeping in view the spread of COVID-19 in India, an appeal dated 

30.03.2020 was made to MDs/CEOs of top 1000 companies in terms of 

market capitalization, to contribute generously to “Prime Minister's Citizen 

Assistance and Relief in Emergency Situations Fund” (PM CARES Fund). In 

the appeal, it was mentioned that such contribution may, inter-alia, include 

the unspent CSR amount, if any, and an amount over and above the minimum 

prescribed CSR amount for FY 2019-20, which can later be offset against the 

CSR obligation arising in subsequent financial years. The said appeal was 

uploaded on the website of the Ministry and sent to e-mails of the 

aforementioned corporates on 31.03.2020. 

2. In pursuance to the said appeal, certain companies claimed to have 

contributed CSR funds to the ‘PM CARES Fund’ over and above their 

prescribed CSR amount for FY 2019-20. Several representations have been 

received in the Ministry for setting off the excess CSR amount spent by the 

companies in FY 2019-20 by way of contribution to ‘PM CARES Fund' against 

the mandatory CSR obligation for FY 2020-21. 

3. The issues raised in the said representations have been examined in the 

Ministry and accordingly, it is hereby clarified that where a company has 

contributed any amount to ‘PM CARES Fund’ on 31.03.2020, which is over 

and above the minimum amount as prescribed under section 135(5) of the 

Companies Act, 2013 (“Act”) for FY 2019-20, and such excess amount or part 

thereof is offset against the requirement to spend under section 135(5) for FY 

2020-21 in terms of the aforementioned appeal, then the same shall not be 

viewed as a violation subject to the conditions that:


Source of MCA Link:

http://www.mca.gov.in/Ministry/pdf/Circular_20052021.pdf



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