Tax Audit Checklist on Clause 22 of Form 3CD under the Income Tax Act, 1961
- Blog|News|Account & Audit|
- < 1 minute
- By Taxmann
- |
- Last Updated on 17 August, 2024
Latest from Taxmann
Under clause 22 of Form 3CD the tax auditor is required to state the amount of interest inadmissible under section 23 of the Micro, Small and Medium Enterprises Development Act, 2006. The Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) is an Act which facilitates the promotion and development and enhancing the competitiveness of micro, small and medium enterprises and for matters connected therewith or incidental thereto. This clause shall apply to all assessees who purchase goods or services or capital goods from Udyam-registered Micro or Small enterprises.
Clause 22 deals with reporting of two types of disallowances in relation to delayed payments to Udyam-registered Micro or Small enterprises:
- Disallowance of expenditure debited to the P&L account, under Section 43B(h) of the Act, in respect of purchases of goods or services from Udyam-registered MSE suppliers in respect of which payment is made to them beyond the time-limit stipulated by Section 15 of MSMED Act (delayed payments); and
- Disallowance under Section 23 of MSMED Act of interest payable in terms of Section 16 of MSMED Act in respect of delayed payments to Udyam-Registered MSE suppliers of goods or services or capital goods.
In this story we have discussed a detailed discussion of the tax audit checklist pertaining to clause 22 of Form 3CD.
Click Here To Read The Full Story
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
