https://www.taxtmi.com/article/detailed?id=345 Form 3CD now mandates reporting the amount of interest inadmissible under the Micro, Small and Medium Enterprises Development Act, 2006, requiring auditors to verify supplier eligibility and interest payable or paid. Section 23 of that Act disallows interest deduction notwithstanding Income-tax provisions, creating an overriding effect. The author criticises total disallowance as commercially problematic and proposes applying a timing-based deduction mechanism to sums payable to eligible suppliers; a respondent warns such timing relief may not meet SMEs' short-term cash needs. Auditors should insist on dedicated registers and documentary proof. en-us Wed, 22 Apr 2009 00:00:00 +0530 Wed, 22 Apr 2009 22:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=345 Form 3CD now mandates reporting the amount of interest inadmissible under the Micro, Small and Medium Enterprises Development Act, 2006, requiring auditors to verify supplier eligibility and interest payable or paid. Section 23 of that Act disallows interest deduction notwithstanding Income-tax provisions, creating an overriding effect. The author criticises total disallowance as commercially problematic and proposes applying a timing-based deduction mechanism to sums payable to eligible suppliers; a respondent warns such timing relief may not meet SMEs' short-term cash needs. Auditors should insist on dedicated registers and documentary proof. Articles Income Tax Wed, 22 Apr 2009 00:00:00 +0530 https://www.taxtmi.com/article/detailed?id=345