Medium, Small and Micro Enterprises (MSME), which have a turnover up to Rs 5 crore, will not be required to get their books audited by an accountant from the next financial year, Finance Minister Nirmala Sitharaman said.
The easing of this compliance burden, however, will be available only to those MSMEs which that carry out less than 5 per cent of their business transactions in cash, Sitharaman said. This will include the receipts and payments done by the MSMEs, according to budget documents.
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“Currently, only businesses having a turnover of more than Rs 1 crore are required to get their books of accounts audited by an accountant … In order to reduce compliance burden … I propose to raise by five times the turnover threshold for audit from the existing rupees one crore to five crore,” she said.
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