Dear Sir,
Is Repair and renovation of house allotted to an senior employee from CSR fund valid ? Should we treat it as CSR project cost or to be treated as Admin Cost of that particular CSR donor. As per CSR rule 5% admin is allowable. Pl suggest.
Ashok Mishra
SNS Foundation
Dear Ashokji,
I am not sure if you can spend CSR funds for an employee’s residential repairs. First of all all CSR funds are to be spent on projects, which should have been approved by the Board and disclosed as such. However if the expenditure is hidden under administrative expenses, you would find it difficult to manage, since 5% limit is not only for admin overheads and capacity building of CSR employees but also for the admin overheads and capacity building of NGOs, to whom grants are given.
rgds
Subhash Mittal