Implementation of CSR by companies above specified threshold is a mandatory provision of the Companies Act, 2013. In order to facilitate effective implementation of CSR by companies, the Ministry of Corporate Affairs has (i) amended Schedule VII of the Act to ensure that a wide range of activities are permissible CSR activities ; (ii) issued a clarificatory circular dated 18.06.2014 suggesting, inter-alia, liberal interpretation of Schedule VII; and (iii) issued amendments to the Companies (Corporate Social Responsibility Policy) Rules, 2014, to (a) include ‘expenditure on administrative overheads’ for CSR as permissible CSR expenditure and (b) facilitate pooling of resources by companies to undertake CSR activities. All the above are available on the Ministry’s website (www.mca.gov.in).
This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Rajya Sabha.
Source :Press Information Bureau, Govt of India,Ministry of Corporate Affairs 02-December, 2015