Key Takeaways: The government is considering delaying the implementation of Section 43B(h), which disallows expenses for delayed payments to micro and small enterprises beyond 45 days. Industry representations cited cash flow concerns, so businesses should track the final decision while continuing timely MSME payments. For the full rule, see our guide on the MSME delayed payment 45 days rule and Section 43B(h).
Key Points:
- The Indian government is thinking about delaying Section 43B(h) of the Income Tax Act 2013.
- This section requires timely payments for micro and small enterprises.
- Finance minister Nirmala Sitharaman has promised trade organizations that their demand for postponement will be considered.
- No official announcement has been made by the government yet.
Summary:
- A delegation led by C R Patil, MP from Navsari (Gujarat), met with Finance Minister Nirmala Sitharaman.
- The delegation included representatives from trade bodies like CAIT and FOSTTA.
- After the meeting, trade organizations in Ahmedabad and Surat shared news of a possible one-year postponement of a new payment rule.
- TAAS issued a press statement cautioning that an official announcement is still pending.
- Since January 2024, trading activities have slowed due to the new rule, affecting businesses nationwide.
- Trade groups are urging for a phased implementation to minimize disruptions.
Have any Questions or Received a notice, get in touch with us to resolve it.
Contact – anshul@karwaandassociates.com
Leave a Reply