PRACTICING CHARTERED ACCOUNTANT
13401 Points
Posted on 01 May 2009
The Micro , Small and Medium Enterprises Development Act, 2006 has given some protection to the Micro , Small and Medium Enterprises as defined in that Act. One of protection given to these Industries is that the Buyers of these Enterprises have to make the payment to them within stipulated time as per the agreement and if the payment is delayed then the Buyers have to pay interest at prescribed rate. These provisions are given in section 15 to Section 23 of the MSMED Act, Thsese provisions have overriding effect over all the other laws in force and one of the provision which is contained in Section 23 of MSMED Act 2006 the interest paid or payable as per the provisions of MSMED Act 2006 will not be avilable as deduction while calculating the income tax payable by the assessee.
If any body has paid or make a provision of payment of interest to any enterprises as mentioned above have to be reported against the new requirement of the Form 3CD.
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