Rent paid as CSR expense

Administrative expenses has a limit of 5% of total CSR Expenditure. Pl. refer Rule 7 of CSR Rules. 

Yes, if directly attributable to the CSR project:

• Under the CSR Rules (Rule 2(1)(d) and 7) and the MCA FAQ (2021), expenditure incurred on a CSR project, including costs such as rent for premises used exclusively for implementing that project, counts as CSR expenditure. It must be part of an approved CSR project in the CSR policy or annual action plan.

• Administrative overheads (general management, salaries of company staff for CSR administration) are capped at 5% of total CSR expenditure for the year (Rule 7(1)).

• If the company itself implements the project, the rent for a project facility (e.g. a skill centre or clinic) is a project cost. Rent for the company's CSR department office is an administrative overhead.

• Income-tax: CSR spending isn't deductible under Sec 37 (Explanation 2).