Applicability of section 43B(h)

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This discussion clarifies the applicability of Section 43B(h) for wholesale traders of readymade garments. While the section generally mandates payment within 15 or 45 days for purchases from MSMED-registered micro and small enterprises, it appears not to apply to businesses operating solely as traders of goods. Therefore, a wholesale garment trader purchasing from manufacturers may not be subject to these specific payment timelines.

Rajan Mishra

Rajan Mishra (Querist)
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21 March 2024 I am running a proprietorship business as Wholesale Trader of readymade garments & registered under MSMED as Mircro and having turnover of around 1.75crores. I purchased readymade garments from manufacturer of readymade garments who are registered under MSMED as Micro/Small Enterprise.
Whether Section 43B(h) is applicable to me and do i need to pay the manufacturer within 15/45 days?