Kumar Gaurav (Going...to be C.A soon...) (1624 Points)
09 July 2010Can anybody help me on the Micro, Small & Medium Enterprises Development Act,2006..........
From what type of Vendors we need to take confirmations in written??
thnks in advance
CA SURENDRA KUMAR RAKHECHA
(Practising CA at Surat)
(26263 Points)
Replied 18 July 2010
1. Take the suppliers list from your client.
2. Although practically it is a tough job to see whether a particular supplier comes in the category of MSM; still ask your client about the size of the supplier.
3. Then come to ledger accounts of the suppliers and see the pattern of payment.
4. If the payments are being made within 45 days; no need to worry.
5. Select those accounts the payment of which have not been made within 45 days of the supply of the goods.
6. See whether interest is being paid to them at more than 3 times of the bank rate or not.
7. If not calculate the interest and difference of the interest and report it in your Audit.
Tutorial : The purpose of making such provisions in the statute is to protect the interest of the SMS industries otherwise they would not be in a positive to survive if the payment is withheld by their debtors.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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