TC Web Desk
The Ministry of Corporate Affairs (MCA) vide a general circular clarified that spending of Corporate Social Responsibility (CSR) Fund for COVID-19 Vaccination for a person other than employees and their families is eligible CSR activity. The cost incurred towards the vaccination of the company’s employees is not considered under CSR activity.
In continuation to the said circular, “The companies may undertake the aforesaid activity subject to fulfillment of Companies (CSR Policy) Rules, 2014 and the circulars related to CSR issued by this Ministry from time to time”, the notification further added. At present, corporates with a net worth of Rs 500 crore, or revenues exceeding Rs 1,000 crore, or net profit over Rs 5 crore, have to spend 2 percent of their average profit over the last three years on CSR programs.
