Comments relating to Form 3CD is to be reported in para 3 of Form 3CA or Para 5 of Form 3CB
Scenario 1: Verification on Test check basis and based on Representation received from Client regarding MSE Classification
In the course of our audit, for the purpose of verifying disallowances under section 43B(h) of the Income-tax Act, 1961 as per clause 22, we have conducted verification on a test check basis. We have relied on the MSME classification provided by the auditee and the representations made by the management. We have not independently verified the accuracy of the MSME classification. Consequently, our verification of the compliance with section 43B(h) is based on the information and representations provided by the auditee’s management, and our opinion is formed based on the selected samples reviewed. Our opinion is thus dependent on the correctness of these classifications, representations, and the sample’s adequacy. Due to these limitations, the amount of disallowance mentioned in clause 22 may not be accurate or complete.
Scenario 2: 100% Verified however based on the auditee’s MSME classification and management representations
In the course of our audit, for the purpose of verifying disallowances under section 43B(h) of the Income-tax Act, 1961 as per clause 22, we have relied on the MSME classification provided by the auditee and the representations made by the management. We have not independently verified the accuracy of the MSME classification. Consequently, our verification of the compliance with section 43B(h) is based on the information and representations provided by the auditee’s management. Our opinion is thus dependent on the correctness of these classifications and representations
Scenario 3: Absence of necessary records hence unable to verify under section 43B(h)
In the course of our audit, we noted that the auditee does not maintain complete records necessary to verify disallowances under section 43B(h) of the Income-tax Act, 1961. Consequently, we are unable to determine whether all amounts claimed under this section have been correctly accounted for and duly paid within the specified timeframes. This limitation restricts our ability to verify the completeness and accuracy of the compliance with section 43B(h) and thereby reporting in Clause 22. As such, our report is qualified to this extent.
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