• twitter-icon
Unlimited Tax Return Filing


SC Denies to Hear Plea Against 45-Day Payment Rule U/S 43B(h)

SC's Order In Case of Federation of all India Vyapar Mandal versus Union of India & ORS.

The Supreme Court has denied looking into the petition that the Micro and Small Enterprises (MSEs) submitted contesting a 45-day payment rule stated in Section 43B(h) of the Income Tax Act.

SC replying to the petition recommended the MSEs ask for recourse via the HC when they want to pursue any relief pertinent to the same case.

SC authorized the withdrawal of the petition and also granted the MSEs to pursue their statute matter in the High Court if they wished to do so.

A petition pushed the same decision that has been put forth via the Federation of All India Vyapar Mandal, serving as the voice for MSEs nationwide.

Section 43B(h) of the Income Tax Act puts down statutes controlling the credit terms that MSEs can propose, explicitly preventing them from extending credit to buyers for durations of more than 45 days. It specifies that any amounts left for the MSEs should be settled within this duration.

Related: MSME 45 Days Payment Rule from 1st April 2024, Confirmed by FM

Non-compliance with the same provision consequences in penalties and disallowance of deductions u/s 43B(h) of the Income Tax Act. From the buyer’s taxable income, there may be a chance of losing the benefit of deducting the payments made before MSEs if they do not comply with the said duration.

Case TitleFederation of all India Vyapar Mandal versus Union of India & ORS.
Date06.05.2024
Counsel For PetitionerMr. Haresh Raichura, AOR Mrs. Saroj Raichura, Adv. Mr. Kalp Raichura, Adv. Mr. Rajat Vats, Adv.
Supreme CourtRead Order

Disclaimer:- "All the information given is from credible and authentic resources and has been published after moderation. Any change in detail or information other than fact must be considered a human error. The blog we write is to provide updated information. You can raise any query on matters related to blog content. Also, note that we don’t provide any type of consultancy so we are sorry for being unable to reply to consultancy queries. Also, we do mention that our replies are solely on a practical basis and we advise you to cross verify with professional authorities for a fact check."

Published by Arpit Kulshrestha
Arpit Kulshrestha seeks higher interests in financial services, taxation, GST, I-T, etc. Writes articles with depth knowledge and is extensive for the same. The resources provide effective articles for the products of SAG infotech which provides taxation and IT software. Writing from observations and researching makes his articles virtuous. View more posts
SAGINFOTECH PRODUCTS

Leave a comment

Your email address will not be published. Required fields are marked *

Follow Us on Google News

Google News

Latest Posts

New Offer for Professionals

Super Tax Offer

Upto 20% Off
Tax, ROC/MCA, XBRL, Payroll, Online GST

Limited Offer, Hurry

Big Offer for Tax Experts

Upto 20% Discount on Tax Software

    Select Product*