Brief on clarifications given through MCA General Circular No. 21/2014 dated 18th June 2014:
(a) Activities undertaken in pursuance of the CSR policy must be relatable to Schedule VII of the Companies Act 2013.
(b) CSR activities should be undertaken by the companies in project/ programme mode. One off events such as marathons, awards, etc. would not be qualified as CSR expenditure.
(c) Expenses incurred for fulfillment of any regulations such as Labour Laws, Land Acquisition Act, etc. would not count as CSR expenditure.
(d) CSR expenditure incurred by Foreign Holding Company in India will qualify as CSR spend of the Indian subsidiary.
(e) Contribution to Corpus of a Trust/ society/ section 8 companies etc. will qualify as CSR expenditure as long as such entity (trust, etc.) is created exclusively for undertaking CSR activities.
