Coming as a relief to the micro, small and medium enterprises (MSMEs) entities, Finance Minister Nirmala Sitharaman hinted at the possibility of the government reconsidering changes made to the income tax rules mandating payments to MSMEs within 45 days.
Further, the minister urged the MSMEs to send representations on the same, adding that the government will “surely do something about it in the July Budget.”
She said that the changes mandating the 45-day payment window was introduced as per requests from MSMEs themselves.
“The change in income tax Act did not come this year, it came in 2023, if you want to change it then when the new government comes in the July Budget something can be done depending on the representations that are submitted. But we have changed the income tax act as per requests from MSMEs themselves,” the Finance Minister said.
“Request was payment was not happening in 45 days. But even if MSMEs don’t want this rule then it gets easier to change it and go back to the original one,” she said.
The 45-day rule for the MSME businesses has been in an imbroglio since it came into effect. This has happened to such an extent that the associations have moved the Supreme Court, urging its interference.
However, the apex court rejected the plea, filed by Federation of All India Vyapar Mandal, and allowed them to approach the high court.
Also Read: How the 45-day rule clause in I-T Act causing hurdles for MSME businesses?
The Finance Minister also assured that tax relief for MSMEs remain accessible. However, she emphasized that this relief is contingent upon timely payments, ensuring that businesses benefit while adhering to current payment schedules.
