is it true? "Purchase of goods or services from MSME registred firm or companyneeds to make payment within 15 days and max up to 45 das need to make payment by paying 3 time bank interest rate and also complete purchases will be disallowed and will be added back to income"
08 April 2023
Section 15 of the MSMED Act mandates payments to MSMEs within the time as per the written agreement, which cannot be more than 45 days. If there is no such written agreement, the section mandates that the payment shall be made within 15 days.
08 April 2023
Section 16 of the MSMED Act provides, if payment is not made within the time limit specified under section 15, then the interest payable shall be three times of the bank rate notified by the RBI. Section 23 of MSMED Act provides, notwithstanding anything contained in the Income tax Act, 1961 (43 of 1961), the amount of interest payable or paid by any buyer, under or in accordance with the provisions of this Act, shall not, for the purposes of computation of income under the Income Tax Act, 1961, be allowed as deduction. Section 24 of MSMED Act provides that the provisions of sections 15 to 23 shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force is having overriding effect to the extent of any inconsistent provisions contained in any other law for the time being.
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