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Under the Companies Act, 2013, certain classes of for-profit entities are required to obtain at least two percent of their three-year annual average net profit for CSR activities in a particular financial year.
In March, the Ministry of Corporate Affairs stated that contributions by companies to the PM-CARES fund would be considered CSR spending. The decision came amid a coronovirus epidemic by the ministry, which is implementing the act.
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Now, the Ministry has made changes in Schedule VII of the Act for the provision. Schedule VII deals with CSR activities.
“In Schedule VII, item (viii), after the words” Prime Minister National Relief Fund “or” Relief in Prime Minister’s Civil Assistance and Emergency Situation Fund (PM Cars Fund) “shall be inserted,” the Ministry said in a notification on Tuesday. Was released on.
This notification will be considered effective from March 28.
PM CARES funds will be used to deal with any emergency or critical situation such as an outbreak of coronavirus.
Under Section 135 of the Companies Act, 2013, total assets of at least Rs 500 crore, turnover of Rs 1,000 crore or more or a minimum net profit of Rs 5 crore during the immediate financial year, CSR Expenses.
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