Now, firms can spend CSR funds on Covid
New Delhi, March 23
The government has extended the expenditure on corporate social responsibility (CSR) by companies to tackle the Covid outbreak, stated a circular issued by the Corporate Affairs Ministry.
Under the Companies Act, certain classes of profitable entities have to set aside a minimum of two per cent of their annual net profit for three years towards CSR activities. Spending CSR funds on an epidemic was not one of them which has now been added. However, the government has yet to come out with an order to extend the last date for submission of income tax and GST returns whose last date is on March 31.
While additional resources from the corporate sector will assist the fight against the epidemic, the government has created elbow room by increasing the cap on special additional excise duty on petrol and diesel by Rs 18 and Rs 12 per litre, according to amendments passed in the Finance Bill. The current cap was Rs 10 and Rs 4, respectively. The government has already availed of the crash in crude oil prices by increasing the excise duty on fuel. — TNS
