Disaster management expenditure can be claimed as CSR Expenditure?

 The Ministry of Corporate Affairs (MCA) has amended the Schedule VII of the Companies Act, 2013 (the Act). The Schedule VII of the Act speaks about the Activities which may be included by companies in their Corporate Social Responsibility (CSR) Policies. The schedule is amended by adding point (xii) viz.,

 “(xii) disaster management, including relief, rehabilitation and reconstruction activities.”

It means, if the company has spent on recovery relief and management of issues caused by any natural disaster the said expenditure can be claimed as CSR The amendment is effective from the date of its publication in the Official Gazette which is 30 May, 2019.

Though, prior to this amendment, the Companies were also eligible to claim the Disaster relief fund as CSR expenditure under various heads
For example,

• Medical aid under ‘promoting health care including preventive health care.’
• Food supply under ‘eradicating hunger, poverty and malnutrition’.
• Supply of clean water under ‘sanitation and making available safe drinking water’. 

 (Source: Point 7 of Annexure to General Circular dated 18.06.2014)