Yes, the expenditure incurred on an expert or consultant for technical support can be included in the Corporate Social Responsibility (CSR) project cost under Indian law.
According to the Companies Act 2013, Section 135 and the CSR Rules, 2014, companies can build CSR capacities of their personnel or those of their implementing agencies through institutions with a proven track record of at least three financial years. However, such expenditure, including expenditure on administrative overheads, should not exceed five percent of the total CSR expenditure of the company in one financial year.
Here is a step-by-step guide on how you can account for it:
1. Identify and list down all the expenditures related to the CSR project.
2. Ensure that the cost of the consultant/expert falls under permissible CSR overheads.
3. Calculate the total CSR expenditure for the financial year.
4. Check if the consultant/expert's cost, combined with other administrative overheads, does not exceed 5% of the total CSR expenditure.
5. If it is within the limit, you can include it in the CSR project cost.
Remember to keep all invoices and supporting documents related to the consultant's expenditure for future reference or audit purposes.
Please refer to the Companies Act 2013, Section 135, and CSR Rules, 2014 for more details. You might also consider consulting with a legal expert for a more comprehensive understanding.
Please note that this advice is based on the general interpretation of the law, and the actual handling can depend on specific company policies and practices. It's always best to consult with a legal expert or a CSR consultant to ensure compliance with all regulations.