The quorum of the 1403 tenders law
(additional details)
1 What is the quorum of transactions?
The transaction limit is the amount determined by the Ministry of Economic Affairs and Finance, taking into account some indicators to evaluate the amount of transactions.
2. What is the use of determining the quorum of transactions?
It is important to determine the quorum for holding tenders and doing tax duties. In fact, the applications of determining transaction limits can be summarized as follows:
– Holding tenders in government companies
– Registering purchased property as an expense in financial statements
– Correct submission of quarterly transactions
3 How to determine the transaction limit
According to Note 1, Article 3 of the Tendering Law, the Ministry of Economic Affairs and Finance is obliged to propose to the Cabinet of Ministers for approval at the beginning of each year the quota of transactions based on the indicators of goods and services announced by the Central Bank of the Islamic Republic of Iran. This proposal will be notified to the general public in the form of a circular after the approval of the Cabinet of Ministers
4 What is the quorum for small transactions?
The limit of small transactions is the amount determined at the beginning of each year by the Ministry of Economic Affairs and Finance, and it is used as a criterion for evaluating other transactions in tenders, measuring costs in basic financial statements, and recording transactions in sales and purchase reports.
According to the tendering law, the transactions are divided into the following three categories:
Great deals
Medium deals
Small transactions
Since the quorum of medium and large transactions are determined based on a coefficient of the quorum of small transactions, determining the quorum of small transactions is of particular importance.
Tip
Transactions in which the transaction amount is more than the ceiling of the amount of small transactions but does not exceed ten times the ceiling of the value of small transactions are called medium transactions and transactions whose initial estimated amount is more than ten times the ceiling of the value of small transactions are called large transactions.
5⃣ What is the quorum for seasonal transactions?
According to Article 169 of the Islamic Civil Code, in order to carry out transactions, it is necessary to register and report the complete information of the counterparty of the transaction and the invoice in the form of an official invoice in the quarterly transaction system. However, if the amount of purchases made is less than 5% of the quorum of small transactions of that year, the list of reports can be registered in the system in a consolidated form in quarterly transactions without mentioning the information of the transaction party and the transaction statement.
In this way, the quota of seasonal transactions can be considered as 5% of the quota of small transactions. In other words, if in a quarter, the transactions of an economic enterprise are less than 5% of the quota of small transactions, Modi will not need to provide the information of the transaction party such as his national ID and other identity and economic information. But for other transactions whose amount is more than this specified limit, the complete information of the transaction parties must be recorded.
The amount of transactions in 1403
Transactions up to 2,100,000,000 Rials are considered small transactions
Two important uses:
1. If a transaction is made in one season up to the amount of 105,000,000 rials (5% of the limit of small transactions), the above transaction can be registered in the form of quarterly transactions (169) in a consolidated form (without the information of the transaction party).
Note: This limit is not applicable in the tax system
2. If an economic unit buys an asset up to the value of 210,000,000 rials (10% of the limit of small transactions) in the year 1403, it can directly record this asset as an expense and there is no need to identify depreciation for the above asset.
This post is written by shadmanamini