Corona Vaccine News: Government changes the Rules of CSR

Government changes the Rules of CSR so that more money can be obtained for Corona Vaccine and Medicine

The Modi government has made some amendments in the rules of CSR i.e. Corporate Social Responsibility. Its purpose is that the government can get more money for the corona vaccine and medicine.

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·       Government has amended the Corporate Social Responsibility (CSR) Rules under the Companies Act

·       This has been done to provide more funds for the development of new vaccines, medicine of COVID-19.

·       After new amendments, the expenditure incurred in its research and development head in this regard can be shown in CSR expenditure.

·       Amendments to CSR spending of companies are conditional

New Delhi, India;

The government has amended the Corporate Social Responsibility (CSR) rules under the Companies Act. This has been done to provide more funds to develop new vaccines, drug development, and medical devices production of COVID-19.

Companies engaged in research and development of new vaccines, pharmaceuticals and medical devices as part of normal business activities, after new amendments, can show the expenses incurred in their R&D head in CSR expenses in this regard. The amendments to the companies' CSR spending are conditional.

It is valid for FY 2020-21, 2021-22, and 2022-23. It is noteworthy that under the Companies Act, companies have to spend two percent of their last three years' average net profit on CSR. The Ministry of Corporate Affairs issued a notification for the change in CSR rules on 24 August.