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Guidance on Clause 17A of 3CD

The Institute has finally come up with a guidance note on newly introduced Clause 17A of the Form 3CD of the Tax Audit Report.

There had been  quite a lot of ambiguity as to role and the extent of responsibilty of the auditor regarding the clause 17A. The applicability of this clause was also not very clear, as to which enterprise will be called a MSME. The MSMED Act 2006, says that any enterprise “registered” with approved authority and fulfilling the specified conditions will be called as MSME

I have not read this Guidance Note till now, I hope the institute clarifies all the doubts properly.

Guidance on Clause 17A

  1. chitrank
    August 28, 2009 at 3:51 pm

    Finally I read the Guidance Note and institute has stressed upon the definition of the supplier which means the “The MSMSE which files the memorandum wiht the approve authority” i.e. it shuld be registered.

    ICAI also clarified the responsibities of the tax auditor under this clause.

    The note specifies that it is the responsibility of the auditee to provide the list of supplier which are MSME.

    On the other hand the note adds a responsibility on the auditor. It says that the auditor should check whether disclosures u/s 22 of the MSMED Act, 2006 are made in the Annual Statements of the Assessee (similar to the disclosures in the schedule VI of the Cos Act)

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