MSME & Income Tax
This query is : Resolved
26 March 2024
A Proprietory concern registered under GST,
but Not registered under MSME, also having turnover below tax Audit limit
If its Vendor are registered under MSME
Is Proprietary concern liable to clear its dues to their vender (regd in MSME) within 45 days ?
but Not registered under MSME, also having turnover below tax Audit limit
If its Vendor are registered under MSME
Is Proprietary concern liable to clear its dues to their vender (regd in MSME) within 45 days ?
26 March 2024
Yes it is. However, if the turnover is below the tax audit limit and if the vendor had opted for presumptive taxation u/s 44AD, then the the disallowance u/s 43B(h) will not be applicable as the section 44AD starts with "Notwithstanding anything contrary contained in section 28 to 43C".
However, section 43B(h) disallowance is not applicable to the vendors who are registered themselves as traders under MSME.
However, section 43B(h) disallowance is not applicable to the vendors who are registered themselves as traders under MSME.
Message likes :
1 times
26 March 2024
So any Buyer (Whether company/LLP/Firm/Proprietary) not registered under MSME and not opted for presumptive taxation has to pay within 45 days to its MSME registered vendors even if exempted from Tax Audit?
26 March 2024
Exactly, because unlike some of the TDS provisions, this is entirely different because, it is nowhere specified that it is applicable only to those who are liable to get audited u/s 44AB. hence, it is applicable, however the vendor needs to be either Micro or small and need to be either manufacturer or service provider and our registration under MSME is irrelevant.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR 2 Short Term gain & Long term gain
- Reporting Income under Section 44ADA
- Itr 1 processing
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR selection for salaries and capital gain less than L
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR 1: Details for showing Exempt Income
- ITR returnFY25-26
- ITR validation error - Balance sheet is not filled
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
