Assurance Gazette – June 2024 Edition

Welcome to the June 2024 edition of the Assurance Gazette! We are excited to bring you valuable insights into the amendments in section 43B of Income Tax Act,1961. This Gazette offers valuable insights into tax implications of the same including reporting in FORM 3CD and provides you with an understanding of provisions related to MSME payments in a concise manner.  

In this edition, we also present the Expert Advisory Committee’s opinion on the accounting treatment of subsequent expenditure on Property, Plant and Equipment, Export incentives and CSR expenditure within the framework of Indian Accounting Standards (Ind AS) and accounting standards (AS). The edition also captures updated Standards on Auditing (SAs) 800, 805, and 810, aiming to enhance the quality and effectiveness of audits and align with evolving financial reporting frameworks.  

The new standards will be effective from April 1, 2024, while the existing standards remain applicable until the end of the financial year 2023-24. We are committed to keeping you informed about the latest developments in the accounting and auditing world. We strive to present complex information in a clear and accessible manner, empowering you to make informed decisions. We encourage you to share your feedback and suggestions on topics you’d like us to explore in future editions. Your input is invaluable in helping us tailor our content to meet your evolving needs. 

Tax Implications under Section 43B(h) w.e.f. April 1, 2024 on MSME Payments: 

Section 43B of the Income Tax Act, 1961, underwent a significant amendment through the Finance Act 2023, introducing Clause(h).  

This clause focuses on payments to micro and small enterprises (MSEs) and brings about changes in the deduction mechanism. As per Section 15 of MSME Act in relation to Liability of buyer to make payment – “Where any supplier supplies any goods or renders any services to any buyer, the buyer shall make payment therefor on or before the date agreed upon between him and the supplier in writing or, where there is no agreement in this behalf, before the appointed day:  

Provided that in no case the period agreed upon between the supplier and the buyer in writing shall exceed forty-five days from the day of acceptance or the day of deemed acceptance.