Key Points
The new rule, Section 43B(h) of the Income Tax Act, introduced in the Finance Act 2023, is designed to make sure small businesses get paid on time..
It allows companies to get tax breaks if they pay their small business suppliers within the time limits set by the MSMED (Micro, Small and Medium Enterprises Development) Act, 2006.iStockImage for representation..
Indian exporters have urged the government to exempt them from the 45-day payment rule for goods bought from micro and small enterprises (MSEs) as it will impact their businesses..
Exporters who receive supplies from micro and small units have been affected as it has impacted their liquidity," according to the letter dated February 16.. It said that for exports, payment is received with an average time lag of 120 days, although the RBI allows a nine-month period to realise export proceeds as sometimes it takes even longer...
Let's ensure our tax policies promote growth, sustainability, and the global competitiveness of all Indian enterprises," Srivastava said.. Micro-enterprise is a unit having investment in plant and machinery or equipment not exceeding Rs 10 million and turnover not exceeding Rs 50 million..
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