Corporate contributions towards Narendra Modi-led Government’s two key initiatives of Swachh Bharat and Clean Ganga will now be counted as CSR spend.

The Corporate Affairs Ministry has amended Schedule VII of Companies Act to specify that contributions to ‘Swachh Bharat Kosh’ and ‘Clean Ganga Fund’ would be eligible CSR spend.

New framework

Under the CSR framework, certain companies have to fork out 2 per cent of their three-year average annual net profit towards CSR activities.

The mandatory CSR norm applies to companies having at least ₹5 crore net profit, ₹1,000-crore turnover or ₹500 crore net worth. The CSR framework came into effect from April 1 this year after the enactment of a new company law in 2013. (The Hindu)