According to sources, MSME Ministry and Finance Ministry can together find a middle path. These efforts can be made to remove the problems faced by MSME businessmen due to this law.
Preparations are underway for major changes in the Income Tax law related to payment to MSMEs within 45 days. According to sources, MSME Ministry and Finance Ministry can together find a middle path. These efforts can be made to remove the problems faced by MSME businessmen due to this law. For this, we may have to wait for the budget of the new government to be presented in July after the Lok Sabha elections.
The government had taken a step in the budget last year to solve the problem of delay in payments to MSMEs and small businessmen. With this step, instead of ending the troubles of MSME businessmen, it increased further.
Protests also took place against it across the country. According to traders, due to the new law, big companies have stopped placing orders to registered MSMEs. They should not be forced to make payment within 45 days as per the new Income Tax law. New Subsection H included In Budget 2023-24, the government has included a new Subsection H in Section 43B of the Income Tax Act. Due to this, no company paying the old dues of MSMEs can claim deduction in lieu of payment in that business year, in such a situation, companies started placing orders to unregistered MSMEs to avoid this stringent law. On the other hand, in order to keep getting orders from big companies, many MSMEs also surrendered their registration. Changes in MSMEs Act 2006 NvaCreator has received information from sources that the government is preparing to make amendments in MSMEs Act 2006. The government can increase the payment period of 45 days to 90 days. The Finance Ministry can also make changes in the existing income tax law to provide relief to MSMEs. Recently, protests took place across the country regarding the law of payment within 45 days. Today the matter reached the Supreme Court, however, the Supreme Court refused to hear the petition of the Federation of All India Trade Boards. According to information received by the government is aware of the problems MSMEs are facing due to the new income tax law. In the budget to be presented in July, an attempt will be made to find a middle path to solve the problem.
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