The authorities has amended the company social accountability (CSR) guidelines to incorporate Covid-19 associated analysis and improvement (R&D) expenditure on new vaccines, medication and gadgets.
Companies can now declare such bills underneath CSR if the analysis is in collaboration with a publicly-funded establishment.
The CSR regulation mandates firms with web value of Rs 500 crore and above, or with income of Rs 1,000 crore and above, to spend 2% of the common income of the earlier three years on CSR tasks.
Till now expenditure incurred by firms on actions to pursue the ‘regular course’ of their enterprise isn’t counted as CSR expenditure. Hence, a pharma firm couldn’t fund pharma R&D underneath CSR exercise until now.
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