Cost Accountants as Accountant in Income tax act-Thronging for a rightful place!

Management Accountant-an accountant of the future for Governance-Both Corporate world and the GovernmentWhy should Cost accountants be allowed to conduct Tax Audit u/s44AB of Income tax audit.1. Cost accountants are basically professional accountants withfocus on Cost management and accounting for managerial needs(A truemanagement accountant)2.ICWAI is a professional accounting body Established by a statuteway back in 1959.3.It is a founder member of International federation of accountants.4. Many of the members of this institute are working in compositeaccounting area (Financial and cost accounting) , as well as, manyof the practicing members are involved in Internal audit function,Cost accounting also depends on same set of original records whichis used to draw financial statements only the mode of visualizingthe expenditure and the method of treatment is different whichfinally measures the efficiency of the enterprise.5.Financial accounts has a singular goal of drawing profits out ofall incomes by way of charging all expenses. Its classification issimply whether an item is a capital/revenue/deferred revenue .Thatis the crux of the financial statements.Cost accounting is based on classification of expenditure intoDirect/indirect its concern is not profit-centric since it believesthat such simplistic assumption misleads the efficiency ofsegments/sub segments of the organization .The financial accountscan get the owners caught napping by building castles withoutfoundation. Cost accounting is truly a test of efficiency of thegoing concern and the dimensions of cost accounting are everevolving.6.When we talk interms of Tax collection we talk in terms ofallowances and disallowances of items occurring in the financialstatements . Infact the tax authorities are concerned with actualcost under the particular head and also in some cases whether suchis heads of expenditure are fanciful/decorator or factual. This onlyshows that tax authorities are at varience with financial accountingand its policies of classification of expenditure.A cost accountantis in a better position to interpret on Closing stock valuationwhich is an important component of profit valuation. A costaccountant again is in a better position to interpret Assetvaluation its position in depreciation etc. A cost accountant isagain in a better position to check the various allowances(investment) are being properly granted. Basically the concept ofcost is hidden in tax laws for allowance and disallowances of incomeand expenditure and this is where Taxman have to avail the servicesof cost accountant .
Added inputs by ssrn
One of the Direct Tax enactment i.e Estate Duty Actcontains the Definition of Accountant and CWAs were on par with CAs in thatAct. Though the ACT was abolished long back, CWAs are accountants. We canargue that when CWAs are accountants in one of the Direct Tax , how theycannot be accountant in another Direct Tax.originally framed form 3CD by CBDT, it contained somelines at the end of form stating that the form should be filled inaccordance with the generally accepted accounting principles/ standards setby the ICAI and ICWAI.It means the original intent of the govt is to recognise the CWAs in Incometax act also. It is diluted by way of explanation to the accountantdefinition.

Management Accountant-an accountant of the future for Governance-Both Corporate world and the Government.
SME act.

7. (1) Notwithstanding anything contained in section
11B of the Industries (Development and Regulation)
Act, 1951, the Central Government may, for the
purposes of this Act, by order, notified and having
regard to the provisions of sub-sections (4) and (5),
classify any class or classes of enterprises, whether
proprietorship, Hindu undivided family, association of
persons, co-operative society, partnership firm,
company or undertaking, by whatever name called, -
Classification of
enterprises
(a) in the case of the enterprises engaged in
the manufacture or production of goods
pertaining to any industry specified in the
First Schedule to the Industries (Development
and Regulation) Act, 1951 as -
(i) a small enterprise, where the investment
in plant and machinery does not exceed five
crore rupees; or
(ii) a medium enterprise, where the
investment in plant and machinery is more
than five crore rupees but does not exceed
ten crore rupees;
(b) in the case of the enterprises engaged in
providing or rendering of services in relation
to any industry specified in the First Schedule
to the Industries (Development and
Regulation) Act, 1951, as –
(i) a small enterprise, where the
investment in equipment does not
exceed two crore rupees; or
(ii) a medium enterprise, where the
investment in equipment is more than
two crore rupees but does not exceed
five crore rupees.
(ii)
Explanation. – For the removal of doubt it is hereby
declared that the investment in land and building or
equipment, as the case may be, shall not be taken
into account while determining the investment in
plant and machinery or, as the case may be,

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While the government has clearly expressed its concern very clearly in the SMEd bill 2005 it is for the ICWAI to comeup with a concept paper to present before the government on the Management Accountants role in SMEs.
From the industry angle i suggest to go for Inclusive Accounting Model(a varient of Integrated Accounting).
While financial accounting is concerned about the status of historical accounting on a particular date Cost and management accounting is vital for SMEs sustainable development whether the business horizon restricts to production of rawmaterial,agricultural produce or transcends to rendering service to the society.
A concept paper on inclusive accounting will go a longway to help SMEs realise the value of management accounting.

Role of management accountant in small and medium enterprises.

Management Accountant-an accountant of the future for Governance-Both Corporate world and the Government.
Small and medium enterprises are backbone of an economy.Recognising this Governments have been focussing on their development and sustenance.

SME development bill 2005 is below:

THE SMALL AND MEDIUM ENTERPRISES DEVELOPMENT BILL, 2005
A Bill to provide for facilitating the promotion and development and enhancing
the competitiveness of small and medium enterprises and for matters
connected therewith or incidental thereto.
WHEREAS a declaration as to expediency of control of certain industries by
the Union was made under section 2 of the Industries (Development and
Regulation) Act, 1951;
AND WHEREAS it is expedient to provide for facilitating the promotion and
development and enhancing the competitiveness of small and medium
enterprises and for matters connected therewith or incidental thereto;
BE it enacted by Parliament in the Fifty-sixth Year of the Republic of India as
follows:-
CHAPTER I
PRELIMINARY
1. (1) This Act may be called the Small and Medium
Enterprises Development Act, 2005.
(2) It shall come into force on such date as the
Central Government may, by notification, appoint;
and different dates may be appointed for different
provisions of this Act and any reference in any such
provision to the commencement of this Act shall be
construed as a reference to the coming into force of
that provision.
Short title and
commencement
2. In this Act, unless the context otherwise requires,
-
(a) "Advisory Committee" means the committee
constituted by the Central Government under subsection
(2) of section 7;
(b) "appointed day" means the day following
immediately after the expiry of the period of thirty
days from the day of acceptance or the day of
deemed acceptance of any goods or any services by
a buyer from a supplier.
Explanation .– For the purpose of this clause,-
(i) "the day of acceptance" means,-
(a) the day of the actual delivery of goods or
the rendering of services; or
(b) where any objection is made in writing by
the buyer regarding acceptance of goods or
services within thirty days from the day of the
Definitions
65 of 1951
61 of 1981
2 of 1934
1 of 1956
1 of 1956
delivery of goods or the rendering of services,
the day on which such objection is removed
by the supplier;
(ii) "the day of deemed acceptance" means,
where no objection is made in writing by the
buyer regarding acceptance of goods or
services within thirty days from the day of the
delivery of goods or the rendering of services,
the day of the actual delivery of goods or the
rendering of services;
(c) "Board" means the National Small and Medium
Enterprises Board established under section 3;
(d ) "buyer" means whoever buys any goods or
receives any services from a supplier for
consideration;
(e) "enterprise" means an industrial undertaking or a
business concern or any other establishment, by
whatever name called, engaged in the manufacture
or production of goods, in any manner, pertaining to
any industry specified in the First Schedule to the
Industries (Development and Regulation) Act, 1951
or engaged in providing or rendering of any service
or services in relation thereto;
(f) "goods" means every kind of movable property
other than actionable claims and money;
(g) "medium enterprise" means an industrial
enterprise classified as such under sub-clause (ii) of
clause (a) or sub-clause (ii) of clause (b) of subsection(
1) of section 7;
(h) "National Bank" means the National Bank for
Agriculture and Rural Development established under
section 3 of the National Bank for Agriculture and
Rural Development Act, 1981;
(i) "notification" means a notification published in the
Official Gazette;
(j) "prescribed" means prescribed by rules made
under this Act;
(k) "Reserve Bank" means the Reserve Bank of India
constituted under section 3 of the Reserve Bank of
India Act, 1934;
(l) "small enterprise" means an industrial enterprise
classified as such under sub-clause (i) of clause (a)
or sub-clause (i) of clause (b) of sub-section (1) of
39 of 1989
section 7;
(m) "supplier" means a small enterprise, which has
filed a memorandum with the authority referred to in
clause (a) of sub-section (1) of section 8, and
includes, –
(i) the National Small Industries Corporation,
being a company, registered under the
Companies Act, 1956;
(ii) the Small Industries Development
Corporation of a State or a Union territory, by
whatever name called, being a company
registered under the Companies Act, 1956;
(n) "Small Industries Bank" means the Small
Industries Development Bank of India established
under sub-section (1) of section 3 of the Small
Industries Development Bank of India Act, 1989;
(o) "State Government", in relation to a Union
territory, means the Administrator thereof appointed
under article 239 of the Constitution.
CHAPTER II
NATIONAL SMALL AND MEDIUM ENTERPRISES
BOARD
3. (1) With effect from such date as the Central
Government may, by notification, appoint, there shall
be established, for the purposes of this Act, a Board
to be known as the National Small And Medium
Enterprises Board.
(2) The head office of the Board shall be at Delhi.
(3) The Board shall consist of the following members,
namely:-
(a) the Minister in charge of the Ministry or
Department of the Central Government
having administrative control of the small and
medium enterprises who shall be the ex officio
Chairperson of the Board;
(b) the Minister of State or a Deputy Minister,
if any, in the Ministry or Department of the
Central Government having administrative
control of the small and medium enterprises
who shall be ex officio Vice-Chairperson of the
Board, and where there is no such Minister of
State or Deputy Minister, such person as may
be appointed by the Central Government to
be the Vice-Chairperson of the Board;
(c) five Ministers of the State Governments
having administrative control of the
departments of small scale industries or, as
the case may be, small and medium
enterprises, to be appointed by the Central
Government to represent such regions of the
country as may be notified by the Central
Government in this behalf;
(d) the Administrator of a Union territory to
be appointed by the Central Government, ex
officio;
(e) the Secretary to the Government of India
in charge of the Ministry or Department of the
Central Government having administrative
control of the small and medium enterprises,
ex officio;
(f) five Secretaries to the Government of
India, to represent the Ministries of the
Central Government dealing with commerce
and industry, finance, food processing
industries, labour and planning to be
appointed by the Central Government, ex
officio;
(g) the Chairman of the Board of Directors of
the National Bank, ex officio;
(h) the chairman and managing director of
the Board of Directors of the Small Industries
Bank, ex officio;
(i) the chairman, Indian Banks Association, ex
officio;
(j) One officer of the Reserve Bank, not below
the rank of an Executive Director; to be
appointed by the Central Government to
represent the Reserve Bank;
(k) ten persons to represent the associations
of small enterprises and medium enterprises,
at least three of whom shall be
representatives of associations of women’s
enterprises, to be appointed by the Central
Government;
(l) two persons of eminence, one each from
the fields of economics and industry, at least
one of whom shall be a woman, to be
appointed by the Central Government; and
(m) one officer not below the rank of Joint
Secretary to the Government of India in the
Ministry or Department of the Central
Government having administrative control of
the small and medium enterprises to be
appointed by the Central Government, who
shall be the Member-Secretary of the Board,
ex officio.
(4) The term of office of the members, other than ex
officio members, the manner of filling vacancies, and
the procedure to be followed in the discharge of their
functions by the members shall be such as may be
prescribed:
Provided that the term of office of an ex officio
member shall continue so long as he holds the office
by virtue of which he is such a member.
(5) No act or proceedings of the Board shall be
invalid merely by reason of-
(a) any vacancy in, or any defect in the
constitution of, the Board; or
(b) any defect in the appointment of a person
acting as a member of the Board; or
(c) any irregularity in the procedure of the
Board not affecting the merits of the case.
(6) The Board shall meet at least once in every three
months in a year.
(7) The Board may associate with itself, in such
manner and for such purposes as it may deem
necessary, any person or persons whose assistance
or advice it may desire in complying with any of the
provisions of this Act and a person so associated
shall have the right to take part in the discussions of
the Board relevant to the purposes for which he has
been associated but shall not have the right to vote.
(8) Without prejudice to sub-section (7) the
Chairperson of the Board may, for not more than two
of the meetings of the Board in a year, invite such
Ministers of the State Governments having
administrative control of the departments of small
scale industries or, as the case may be, the small
and medium enterprises, or the Administrators of
Union territories and representatives of such other
associations of small and medium enterprises, as he
may deem necessary for carrying out the purposes of
this Act.
4. (1) The Central Government may remove a
member of the Board from it, if he –
(a) is, or at any time has been, adjudged as
insolvent; or
(b) is, or becomes, of unsound mind and
stands so declared by a competent court; or
(c) refuses to act or becomes incapable of
acting as a member; or
(d) has been convicted of an offence which, in
the opinion of the Central Government,
involves moral turpitude; or
(e) has so abused, in the opinion of the
Central Government, his position as a
member of the Board as to render his
Removal of
member from
Board
continuance in the Board detrimental to the
interests of the general public.
(2) Notwithstanding anything contained in subsection
(1), no member shall be removed from his
office on the grounds specified in clauses (c) to (e) of
that sub-section unless he has been given a
reasonable opportunity of being heard in the matter.
5. The Board shall, subject to the general directions
of the Central Government, perform all or any of the
following functions, namely:-
(a) examine the factors affecting the
promotion and development of small and
medium enterprises and review the policies
and programmes of the Central Government
in regard to facilitating the promotion and
development and enhancing the
competitiveness of such enterprises and the
impact thereof on such enterprises;
(b) make recommendations on matters
referred to in clause (a) or on any other
matter referred to it by the Central
Government which, in the opinion of that
Government, is necessary or expedient for
facilitating the promotion and development
and enhancing the competitiveness of the
small and medium enterprises; and
(c) advise the Central Government on the use
of the Fund or Funds constituted under
section 12.
Functions of Board
6. Subject to other provisions of this Act, the
Member-Secretary of the Board shall exercise such
powers and perform such functions as may be
prescribed.
Powers and
functions of
Member-Secretary
of Board
CHAPTER III
CLASSIFICATION OF ENTERPRISES, ADVISORY
COMMITEE AND MEMORANDUM OF SMALL AND
MEDIUM ENTERPRISES
65 of 1951 7. (1) Notwithstanding anything contained in section
11B of the Industries (Development and Regulation)
Act, 1951, the Central Government may, for the
purposes of this Act, by order, notified and having
regard to the provisions of sub-sections (4) and (5),
classify any class or classes of enterprises, whether
proprietorship, Hindu undivided family, association of
persons, co-operative society, partnership firm,
company or undertaking, by whatever name called, -
Classification of
enterprises
(a) in the case of the enterprises engaged in
the manufacture or production of goods
pertaining to any industry specified in the
First Schedule to the Industries (Development
and Regulation) Act, 1951 as -
(i) a small enterprise, where the investment
in plant and machinery does not exceed five
crore rupees; or
(ii) a medium enterprise, where the
investment in plant and machinery is more
than five crore rupees but does not exceed
ten crore rupees;
(b) in the case of the enterprises engaged in
providing or rendering of services in relation
to any industry specified in the First Schedule
to the Industries (Development and
Regulation) Act, 1951, as –
(i) a small enterprise, where the
investment in equipment does not
exceed two crore rupees; or
(ii) a medium enterprise, where the
investment in equipment is more than
two crore rupees but does not exceed
five crore rupees.
(ii)
Explanation. – For the removal of doubt it is hereby
declared that the investment in land and building or
equipment, as the case may be, shall not be taken
into account while determining the investment in
plant and machinery or, as the case may be,
equipment for the purposes of this sub-section.
(2) The Central Government shall, by notification,
constitute an Advisory Committee consisting of the
Secretary to the Government of India in the Ministry
or Department of the Central Government having
administrative control of the small and medium
enterprises, who shall be the Chairperson of the
Advisory Committee, not more than five officers of
the Central Government possessing necessary
expertise in matters relating to small and medium
enterprises and not more than two representatives of
the State Governments to be appointed by the
Central Government.
(3) The Member- Secretary of the Board shall also be
the ex officio Member-Secretary of the Advisory
Committee.
(4) The Central Government shall, prior to classifying
any class or classes of enterprises under sub-section
(1), obtain the recommendations of the Advisory
Committee.
(5) The Advisory Committee shall, after considering
Advisory
Committee
the following matters, communicate its
recommendations to the Central Government,
namely :-
(a) the level of employment in a class or classes of
enterprises;
(b) the level of investments in plant and machinery
or equipment, excluding the investment in land and
building, in a class or classes of enterprises;
(c) the need of higher investment in plant and
machinery or equipment, excluding the investment in
land and building, for technological upgradation,
employment generation and enhanced
competitiveness of the class or classes of
enterprises;
(d) the possibility of promoting and diffusing
entrepreneurship in a small or medium enterprises;
(e) the international standards for classification of
small and medium enterprises; and
(f) such other matters as the Advisory Committee
may think fit.
65 of 1951
61 of 1956
(6) Notwithstanding anything contained in section
11B of the Industries (Development and Regulation)
Act, 1951 and clause (h) of section 2 of the Khadi
and Village Industries Commission Act, 1956, the
Central Government may, while classifying any class
or classes of enterprises under sub-section (1), vary,
from time to time, the criterion of investment and
also consider criteria or standards in respect of
employment or turnover of the enterprises and
include in such classification the micro or tiny
enterprises or the village enterprises, as part of small
enterprises.
8. (1) Any person who intends to establish,-
(a) a small enterprise, may, at his discretion;
or
(b) a medium enterprise, shall,
file the memorandum of small enterprise or, as the
case may be, medium enterprise with such authority
as may be specified by the State Government under
sub-section (4) or the Central Government under
sub-section (3):
Provided that any person who, before the
commencement of this Act, has established –
(a) a small enterprise, whether he had or had
not obtained a registration certificate, may
after the commencement of this Act, at his
discretion, file the memorandum;
(b) a medium enterprise, whether he had or
had not, in pursuance of the notification of the
Government of India in the erstwhile Ministry
Memorandumof
small and medium
enterprises
of Industry (Department of Industrial
Development) No. S.O. 477 (E) dated the
25th July, 1991, filed an Industrial
Entrepreneur’s Memorandum Memorandum
shall, within ninety days from the
commencement of this Act, file the
memorandum, in accordance with the
provisions of this Act.
(2) The form of the memorandum, the procedure of
its filing and other matters incidental thereto shall be
such as may be notified by the Central Government
after obtaining the recommendations of the Advisory
Committee in this behalf.
(3) The authority with which the memorandum shall
be filed by a medium enterprise shall be such as may
be specified by notification, by the Central
Government.
(4) The State Government shall, by notification,
specify the authority with which a small enterprise
may file the memorandum.
(5) The authorities specified under sub-sections (3)
and (4) shall follow, for the purposes of this section,
the procedure notified by the Central Government
under sub-section (2).
CHAPTER IV
MEASURES FOR PROMOTION, DEVELOPMENT
AND ENHANCEMENT OF COMPETITIVENESS OF
SMALL AND MEDIUM ENTERPRISES
24 of 1938
18 of 1942
31 of 1959
52 of 1961
9. (1) The Central Government may, from time to
time, for the purposes of facilitating the promotion
and development and enhancing the competitiveness
of small enterprises and medium enterprises,
particularly of the former, by way of development of
skill in the employees, management and
entrepreneurs, provisioning for marketing assistance
or infrastructure facilities and cluster development of
such enterprises with a view to strengthening
backward and forward linkages, specify, by
notification, such programmes, guidelines or
instructions, as it may deem fit.
(2) Notwithstanding anything contained in the
provisions of the Employers’ Liability Act, 1938, the
Weekly Holidays Act, 1942, the Employment
Exchanges (Compulsory Notification of Vacancies)
Act, 1959 and the Apprentices Act, 1961, a State
Government may, by notification, with a view to
facilitating the graduation of small enterprises to
medium enterprises provide that the provisions of
those Acts shall not apply to small and medium
enterprises employing up to fifty employees in that
Measures for
promotion and
development
State.
10. The credit facilities to the small and medium
enterprises shall be progressive and such as may be
specified in the guidelines or instructions issued by
the Reserve Bank, from time to time, to ensure
timely and smooth flow of credit to such enterprises,
minimise the incidence of sickness among and
enhance the competitiveness of such enterprises.
Credit Facilities
11. For facilitating promotion and development of
small enterprises, the Central Government or a State
Government may, by order notify from time to time,
preference policies in respect of procurement of
goods and services, produced and provided by small
enterprises, by its Ministries or departments, as the
case may be, or its aided institutions and public
sector enterprises.
Procurement
preference policy
12. There shall be constituted, by notification, one or
more Funds to be called by such name as may be
specified in the notification and there shall be
credited thereto any grants made by the Central
Government under section 13.
Funds
13. The Central Government may, after due
appropriation made by Parliament by law in this
behalf, credit to the Fund or Funds by way of grants
for the purposes of this Act, such sums of money as
that Government may consider necessary to provide.
Grants by Central
Government
14. (1) The Central Government shall have the
power to administer the Fund or Funds in such
manner as may be prescribed.
(2) The Fund or Funds shall be utilised exclusively for
the measures specified in sub-section (1) of section
9.
(3) The Central Government shall be responsible for
the coordination and ensuring timely utilisation and
release of sums in accordance with such criteria as
may be prescribed.
Administration and
utilisation of Fund
or Funds.
CHAPTER V
INSPECTION OF SMALL AND MEDIUM
ENTERPRISES AND RELATED MATTERS
4 of 1936
34 of 1948
15. Notwithstanding anything in relation to
inspection contained in the Payment of Wages Act,
Inspection of small
and medium
63 of 1948
19 of 1952
53 of 1961
21 of 1965
39 of 1972
1936, the Employees’ State Insurance Act, 1948, the
Factories Act, 1948, the Employees’ Provident Funds
and Miscellaneous Provisions Act, 1952, the
Maternity Benefit Act, 1961, the Payment of Bonus
Act, 1965 and the Payment of Gratuity Act, 1972, the
inspection of small and medium enterprises shall be
carried out in such manner and by such authority as
may be prescribed:
Provided that while prescribing the manner of
inspection under this section, the Central
Government shall have regard to the promotion of
self-regulation or self-certification by the small
enterprises and medium enterprises.
enterprises
16. Notwithstanding anything contained in any
enactment specified in section 15, every small and
medium enterprise shall maintain such records, file
such returns with such authority and in such forms
as may be prescribed.
Maintenance of
records and filing
of returns by
enterprises
CHAPTER VI
DELAYED PAYMENTS TO SMALL ENTERPRISES
17. 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 seventy-five days from the day of acceptance
or the day of deemed acceptance.
Liability of buyer
to make payment
18. Where any buyer fails to make payment of the
amount to the supplier, as required under section 17,
the buyer shall, notwithstanding anything contained
in any agreement between the buyer and the
supplier or in any law for the time being in force, be
liable to pay interest to the supplier on that amount
from the appointed day or, as the case may be, from
the date immediately following the date agreed upon,
at nine per cent. plus the bank rate notified by the
Reserve Bank.
Date from which
and rate at which
interest is payable
19. The amount due from a buyer, together with the
amount of interest calculated in accordance with the
provisions of section 18, shall be recoverable by the
supplier from the buyer by way of a suit or other
Recovery of
amount due
proceeding under any law for the time being in force.
26of 1996 20. Notwithstanding anything contained in section
19, any party to a dispute may make a reference to
the Industry Facilitation Council for acting as an
arbitrator or conciliator in respect of the matters
referred to in that section and the provisions of the
Arbitration and Conciliation Act, 1996 shall apply to
such dispute as if the arbitration or conciliation were
pursuant to an arbitration agreement referred to in
sub-section (1) of section 7 of that Act.
Reference to
Industry
Facilitation Council
21. No appeal against any decree, award or other
order shall be entertained by any court or other
authority unless the appellant (not being a supplier)
has deposited with it seventy-five per cent. of the
amount in terms of the decree, award or, as the case
may be, other order in the manner directed by such
court or, as the case may be, such authority.
Appeal
22. The State Government shall, by notification,
establish one or more Industry Facilitation Councils,
at such places, exercising such jurisdiction and for
such areas, as may be specified in the notification.
Establishmentof
IndustryFacilitation
Council
23. The Industry Facilitation Council shall consist of
not less than three but not more than five members
to be appointed from among the following categories,
namely:-
(i) Director of Industries, by whatever name
called, or any other officer not below the rank
of such Director, in the Department of the
State Government having administrative
control of the small scale industries or, as the
case may be, small and medium enterprises;
and
(ii) one or more office-bearers or
representatives of small industry or enterprise
associations in the State; or
(iii) one or more representatives of banks and
financial institutions lending to small
enterprises; or
(iv) one or more persons having special
knowledge in the field of industry, finance,
law, trade or commerce.
(2) The person appointed under clause (i) of subsection
(1) shall be the Chairperson of the Industry
Facilitation Council.
(3) The composition of the Industry Facilitation
Council, the manner of filling vacancies of its
members and the procedure to be followed in the
discharge of their functions by the members shall be
such as may be prescribed by the State Government.
24. Where any buyer is required to get his annual
accounts audited under any law for the time being in
force, such buyer shall furnish the following
additional information in his annual statement of
accounts, namely:-
(i) the principal amount and the interest due
thereon (to be shown separately) remaining
unpaid to any supplier as at the end of each
accounting year;
(ii) the amount of interest paid by the buyer
in terms of section 18, along with the
amounts of the payment made to the supplier
beyond the appointed day during each
accounting year;
(iii) the amount of interest due and payable
for the period of delay in making payment
(which have been paid but beyond the
appointed day during the year) but without
adding the interest specified under this Act;
(iv) the amount of interest accrued and
remaining unpaid at the end of each
accounting year; and
(v) the amount of further interest remaining
due and payable even in the succeeding
years, until such date when the interest dues
as above are actually paid to the small
enterprise, for the purpose of disallowance as
a deductible expenditure under section 25.
Requirementto
specifyunpaid
amountwith
interest inthe
annualstatement
ofaccounts
43 of 1961
25. Notwithstanding anything contained in the
Income-tax Act, 1961, the amount of interest
payable or paid by any buyer, under or in accordance
with the provisions of this Act, shall not, for the
purposes of computation of income under the
Income-tax Act, 1961, be allowed as deduction.
Interest not to be
allowed as
deduction from
income
26. The provisions of sections 17 to 25 shall have
effect notwithstanding anything inconsistent
therewith contained in any other law for the time
being in force.
Over-riding effect
CHAPTER VII
MISCELLANEOUS
27. (1) The Central Government or State
Government may appoint such officers with such
designations and such other employees as it thinks
fit for the purposes of this Act and may entrust to
them such of the powers and functions under this Act
as it may deem fit.
(2) The Officers appointed under sub-section (1)
may, for the purposes of this Act, by order require
any person to furnish such information, in such form,
as may be prescribed.
Appointment of
Officers and other
employees
28. (1) Whoever intentionally contravenes or
attempts to contravene or abets the contravention of
any of the provisions contained in sub-section (1) of
section 8 or section 16 or sub-section (2) of section
27 shall be punishable, -
a) in the case of the first conviction, with fine
which may extend to one thousand rupees;
and
(b) in the case of any second or subsequent
conviction, with fine which shall not be less
than one thousand rupees but may extend to
ten thousand rupees.
(2) Where a buyer contravenes the provisions of
section 24, he shall be punishable with a fine which
shall not be less than ten thousand rupees.
Penalty for
contravention of
section 8 or
section 16 or
section 24 or
section 27
29. No court inferior to that of a Metropolitan
Magistrate or a Magistrate of the first class shall try
any offence punishable under this Act.
Jurisdiction of
courts
30. (1) The Central Government may, by
notification, make rules to carry out the provisions of
this Act.
(2) In particular and without prejudice to the
generality of the foregoing power, such rules may
provide for all or any of the following matters,
namely:-
(a) the term of office of the members, the
manner of filling vacancies, and the procedure
to be followed in the discharge of functions by
the members under sub-section (4) of section
3;
(b) the powers and functions of the Member-
Secretary under section 6;
Power to make
rules
(c) the manner in which the Fund may be
administered under sub-section (1) of section
14;
(d) the criteria based on which sums may be
released under sub-section (3) of section 14;
(e) the manner in which and the authority by
which inspection shall be carried under section
15;
(f) the records which may be maintained and
the form in which returns be filed, the method
of filing of returns, and the authority with
whom the returns be filed under section 16;
(g) the information to be furnished and the
form in which it is to be furnished under subsection
(2) of section 27; and
(h) any other matter which is to be or may be
prescribed under this Act.
(3) Every notification issued under sub-section (1) of
section 9 and every rule made by the Central
Government under this section shall be laid, as soon
as may be after it is made, before each House of
Parliament, while it is in session, for a total period of
thirty days which may be comprised in one session or
in two or more successive sessions, and if before the
expiry of the session immediately following the
session or the successive sessions aforesaid, both
Houses agree in making any modification in the
notification or rule or both Houses agree that the
notification or rule should not be made, the notified
order or rule shall thereafter have effect only in such
modified form or be of no effect, as the case may be,
so, however, that any such modification or
annulment shall be without prejudice to the validity
of anything previously done under that notification or
rule.
31. (1) The State Government may, by notification,
make rules to carry out the provisions of this Act.
(2)In particular and without prejudice to the
generality of the foregoing power, such rule may
provide for all or any of the following matters,
namely:-
(a) the composition of the Industry Facilitation
Council, the manner of filling vacancies of the
members and the procedure to be followed in
the discharge of their functions by the
Power to make
rules by State
Government
members of the Industry Facilitation Council
under sub-section (3) of section 23;
(b) any other matter which is to be or may be
prescribed under this Act.
(3) The rule made under this section shall, as soon
as may be after it is made, be laid before each House
of the State Legislature where there are two Houses,
and where there is one House of the State
Legislature, before that House.
32. (1) If any difficulty arises in giving effect to the
provisions of this Act, the Central Government may,
by order published in the Official Gazette, make such
provisions not inconsistent with the provisions of this
Act as may appear to be necessary for removing the
difficulty:
Provided that no order shall be made under this
section after the expiry of two years from the
commencement of this Act.
(2) Every order made under this section shall, as
soon as may be after it is made, be laid before each
House of Parliament.
Power to remove
difficulties
33. (1) The Interest on Delayed Payments to Small
Scale and Ancillary Industrial Undertakings Act, 1993
is hereby repealed.
(2) Notwithstanding such repeal, anything done or
any action taken under the Act so repealed under
sub-section (1) shall be deemed to have been done
or taken under the corresponding provisions of this
Act.