In between the rising pressure from the trade and industry organizations, the Indian government is acknowledging the execution of Section 43B(h) of the Income Tax Act. The same section was revised to ensure timely payments for micro and small enterprises has invoked the concerts in the businesses in the country.
This action post a delegation led by Member of Parliament C R Patil from Navsari (Gujarat), met with Union Finance Minister Nirmala Sitharaman to address the issue.
Representatives from different trade bodies, including the Confederation of All India Traders (CAIT) and the Federation of Surat Textile Traders Association (FOSTTA), participated in the discussion. In a meeting, assurances were given via the Finance Minister that the enactment of the new payment rule shall be delayed.
The postponement meets with the relief via the traders, specifically in Ahmedabad and Surat, Gujarat, where the activities of trading have been influenced as the provision came into force in the present financial year which concluded dated March 31, 2024.
Important: New Rule of Payment to MSMEs Causes Uncertainty in Textile Markets
A press statement is been issued by the Textile Association of Ahmedabad & Surat (TAAS) ensuring the one-year postponement prospect, the Finance Minister stated. TAAS stressed the significance of awaiting an official announcement from the government before making any decision related to trade.
Section 43B(h) execution consequences in lowering the trading activities in the country, since the businesses are struggling with the challenge of complying with the new payment deadlines. Many buyers are not able to satisfy the stated payment durations which causes troubles in the supply chain and financial stress on the micro and small enterprises.
Answering such issues the trade that industry organizations seek the government to acknowledge executing the rule in a precise way. The same approach shall permit the traders to take on the updated provisions without excessively disrupting their functioning.
Since businesses seek additional developments, the decision of the government for the postponement of Section 43B(h) of the Income Tax Act, 1961 shall remain important for the stability and development of the Indian economy, specifically for its micro and small enterprises sector.
