Amended definitions
Definition of CSR
Compared with the previous brief definition of 'CSR', the amendments provide a more extensive and clearer definition, thereby providing a list of activities which do not constitute CSR activities. These include:
activities undertaken in the normal course of business;
activities undertaken to meet statutory requirements;
activities which benefit employees;
activities undertaken on a sponsorship basis for deriving marketing benefits for a company's products;
activities undertaken outside India (apart from training in Indian sports at the national or international level); and
direct or indirect contributions to any political party.
Definition of administrative overheads
The term 'administrative overheads' has been defined as the expenses incurred by a company in the "general management and administration" of CSR functions, excluding expenses directly incurred in designing, implementing, monitoring and evaluating a particular CSR project or programme. It has also been clarified that administrative overheads cannot exceed 5% of a company's total CSR expenditure in one financial year.