Meaning of "sme" in budget 2012-13. is still there is hope?
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
21 March 2012
Dear friends & professional colleagues
today all our professional CA's friends & colleagues very much sad with the union budget 2012-13 for increasing the tax audit limit from 60L to 100L & news also about gone away of bank audit upto 20 cr. advances.
But carefully reading the budget w.r.t tax audit limit increase, it says :turnover limit for Tax Audit and presumptive taxation of SME's increased from Rs 60 L to Rs 100L"
My concern is that:
What is the meaning of SME? Reading the definition of SME's as per RBI RPCD Circular No. RPCD.PLFNS.BC. 31/ 06.02.31/ 2005-06 dated August 19, 2005, which is reproduced below :
" At present, a small scale industrial unit is an undertaking in which investment in plant and machinery, does not exceed Rs.1 crore, except in respect of certain specified items under hosiery, hand tools, drugs and pharmaceuticals, stationery items and sports goods, where this investment limit has been enhanced to Rs. 5 crore. A comprehensive legislation which would enable the paradigm shift from small scale industry to small and medium enterprises is under consideration of Parliament. Pending enactment of the above legislation, current SSI/ tiny industries definition may continue. Units with investment in plant and machinery in excess of SSI limit and up to Rs. 10 crore may be treated as Medium Enterprises (ME). "
On getting deep into the definition you may noticed words "Industrial Unit" so does it will not cover non industrial unit/firm????
So can we conclude that the budget provision covers only Industrial Unit & others still under old provision with 60L audit limit?
Please do no laugh as i have seen some light of hope ....
experts opinion & comments sought on the topic.
today all our professional CA's friends & colleagues very much sad with the union budget 2012-13 for increasing the tax audit limit from 60L to 100L & news also about gone away of bank audit upto 20 cr. advances.
But carefully reading the budget w.r.t tax audit limit increase, it says :turnover limit for Tax Audit and presumptive taxation of SME's increased from Rs 60 L to Rs 100L"
My concern is that:
What is the meaning of SME? Reading the definition of SME's as per RBI RPCD Circular No. RPCD.PLFNS.BC. 31/ 06.02.31/ 2005-06 dated August 19, 2005, which is reproduced below :
" At present, a small scale industrial unit is an undertaking in which investment in plant and machinery, does not exceed Rs.1 crore, except in respect of certain specified items under hosiery, hand tools, drugs and pharmaceuticals, stationery items and sports goods, where this investment limit has been enhanced to Rs. 5 crore. A comprehensive legislation which would enable the paradigm shift from small scale industry to small and medium enterprises is under consideration of Parliament. Pending enactment of the above legislation, current SSI/ tiny industries definition may continue. Units with investment in plant and machinery in excess of SSI limit and up to Rs. 10 crore may be treated as Medium Enterprises (ME). "
On getting deep into the definition you may noticed words "Industrial Unit" so does it will not cover non industrial unit/firm????
So can we conclude that the budget provision covers only Industrial Unit & others still under old provision with 60L audit limit?
Please do no laugh as i have seen some light of hope ....
experts opinion & comments sought on the topic.
21 March 2012
The word SME,no where mentioned in finance bill.
For your info Finance bill relevant portion reproduced below
Section 44AB (i) in clause (a), for the words “sixty lakh rupees”, the words “one crore rupees” shall be substituted
with effect from the 1st day of April, 2013;
(ii) in clause (b), for the words “fifteen lakh rupees”, the words “twenty-five lakh rupees” shall be substituted.
I can say , provisions applicable to all persons , not only industrial units but other persons as well.
I am keeping this query open, do comment.
For your info Finance bill relevant portion reproduced below
Section 44AB (i) in clause (a), for the words “sixty lakh rupees”, the words “one crore rupees” shall be substituted
with effect from the 1st day of April, 2013;
(ii) in clause (b), for the words “fifteen lakh rupees”, the words “twenty-five lakh rupees” shall be substituted.
I can say , provisions applicable to all persons , not only industrial units but other persons as well.
I am keeping this query open, do comment.
21 March 2012
I am keeping this query open, do comment
21 March 2012
Dear author,
You should not be carried away by the budget speech which as such has no legal validity. Pl look into the actual proposed amendment to section 44AB and it only amended the words laying down the limits. Nowhere there is a whisper about SME. It may be that the FM meant a unit or entity with 1 cr as turnover is an SME and obviously so.
siva208@yahoo.com
You should not be carried away by the budget speech which as such has no legal validity. Pl look into the actual proposed amendment to section 44AB and it only amended the words laying down the limits. Nowhere there is a whisper about SME. It may be that the FM meant a unit or entity with 1 cr as turnover is an SME and obviously so.
siva208@yahoo.com
22 March 2012
I agree with the experts and would like to let you know that for 31.3.2012 the old act will prevail and audit has to be done the problem will arise for CA for 31.3.2013 on-wards and hope something will be done in meanwhile by our ICAI
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