Big step of government for MSME, there may be change in payment rules
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New Delhi (Uttam Hindu News): If you do business then this news is very important for you. Because the government is going to change the payment rules. The Finance Ministry may postpone the implementation of 45 day payment rule for MSMEs till April 2025. Sources said the Finance Ministry is considering postponing the imposition of Rule 43B (h) under the Income Tax Act, which mandates payment to Micro, Small and Medium Enterprises (MSMEs) within 45 days. It said this proposed moratorium is expected to last for the entire financial year, while the rules are expected to come into effect from April 1, 2025.
The Finance Act 2023 had amended the income tax. Under this, a limit of 45 days has been set to complete the payment. If this timeline is not followed, the pending payment will be treated as income and subject to taxation. Earlier, the industry had appealed to the Finance Ministry to reconsider the timeline of implementation of this rule. Industry bodies, in their proposal to the Finance Ministry, have suggested possible changes to the Act to provide necessary adjustment period to businesses.
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