Section 22 of MSMED : Section 22: Requirement To Specify Unpaid Amount With Interest In The Annual Statement Of Accounts

Explanation using Example

Imagine a manufacturing company, 'XYZ Pvt. Ltd.', that has an annual turnover exceeding the threshold that requires it to have its accounts audited under the Income Tax Act. This company purchases raw materials from various small suppliers, some of which are registered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act).

During the financial year, XYZ Pvt. Ltd. faced some cash flow issues and failed to pay some of its small suppliers within the prescribed period (the 'appointed day' as per the MSMED Act). Now, as per Section 22 of the MSMED Act, when XYZ Pvt. Ltd. prepares its annual financial statements, it needs to include additional information specifically related to its transactions with these small suppliers:

• XYZ Pvt. Lt...

Login to access all pages and read more content.

To disable ads and read rest of the premium content, subscribe to KanoonGPT Pro.