CA. Ashutosh Dadhich (in service) (97 Points)
25 June 2009We are purchasing goods from SME but as per our payment agreements we have 90 days credit term and paying amount without any delay.
our auditor says that we will have to calculate inerest outstanding more than 45 days for whole year for disclosure purpose.
pls advise whethet he is correct or on what basis we can refuse him to do so ????
Pls reply fast....
Chitrank Jain
(Senior Manager - Group Internal Audit)
(146 Points)
Replied 25 June 2009
Mr. Dadhich,
First ask your auditor the statute under which he is telling you to disclose the interest outstanding.
In my knowledge MSMED Act 2006 empowers the MSME registered under the act to charge interest after a specified period even if the same is not specified in the terms.
And as far as Clause 17A of Form 3CD is concerned we just have to disclose the interest actually paid to MSME u/s 17A of MSMED Act 2006.
CA. Ashutosh Dadhich
(in service)
(97 Points)
Replied 25 June 2009
Dear Chitrank,
We have to disclose this amount in our Annual report
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
CAclubindia
