Clause 22 of Form 3CD seeks the disclosure of the amount of interest inadmissible under Section 23 of the Micro, Small, and Medium Enterprises Development Act, 2006. The tax auditor needs to report the amount of interest inadmissible under Section 23 of the MSMED Act, 2006, irrespective of whether the amount of such interest has been debited to the profit and loss account or not.
The auditor should verify that the client has disclosed the information as required under Section 22 of the MSMED Act, 2006 in the financial. If there is no disclosure in the financial statements, the tax auditor should appropriately qualify his report in Form No. 3CB and also report the fact of non-disclosure in Clause 22 of Form No. 3CD.