MUMBAI: The ministry of corporate affairs has issued a set of FAQs clarifying which Covid-19 related expenditure would be covered under ‘corporate social responsibility’ (CSR) norms.As it is known, large companies are required to spend 2% of their net profits on CSR activities. Various companies, including the Tata group, Reliance etc, have contributed significantly to ‘ PM Cares Fund ’.The FAQ issued on April 10, states that contributions made to ‘PM Cares Fund’ qualify as CSR spend. However, it explains that as ‘Chief Minister’s Relief Fund’ or ‘State Relief Fund for Covid-19’ is not included in Schedule VII of the Companies Act, 2013, thus any contribution to such funds shall not qualify as admissible CSR expenditure. However, contribution made to State Disaster Management Authority to combat Covid-19, shall qualify as an expenditure under item (xii) of the Schedule and clarification dated March 23.Several stakeholders feel that the state governments are at the forefront of battling Covid-19 and also providing meals and other facilities to migrant workers in their respective states. Thus, requisite legislative steps should be taken to enable donations to CM’s funds to also qualify as a CSR spend.The FAQs encapsulate an earlier circular issued on March 23, and point out that spending CSR funds for Covid-19 related activities shall qualify as CSR expenditure. The funds can be used by companies, for various measures such as promotion of health care, including preventive health care and sanitation, and disaster management. A liberal interpretation can be adopted for this purpose.While PM Modi has appealed to India Inc not to cut salaries of its workers, the FAQ adds that payment of salary/wages to employees and workers during the lockdown period (including imposition of other social distancing requirements) is a moral obligation and it shall not qualify as admissible CSR expenditure.However, if any ex-gratia payment is made to temporary or casual workers or daily wage workers over and above the disbursement of wages, specifically for the purpose of fighting COVID-19, the same shall be admissible towards CSR expenditure as a onetime exception. For this a declaration by the Board of Directors, duly certified by the auditors will be needed.