REGARDING SECTION 43B 1 H
This query is : Resolved
Quick Summary
25 April 2025
WE OPTED IN 44AD SCHEME
AND PURCHASE GOOD FROM MSME
SO THIS SECTION WILL APPLY OR NOT
THANKS IN ADVANCE
AND PURCHASE GOOD FROM MSME
SO THIS SECTION WILL APPLY OR NOT
THANKS IN ADVANCE
25 April 2025
Yes, it is applicable...
25 April 2025
BUT PURCHASE GOOD MSME TRADERS NOT MANUFACTURER ..SIR NOW ITS APPLICABLE SIR
25 April 2025
CBDT’s clarification confirms that Section 43B(h) applies to all registered MSMEs, including traders.
So, if you bought goods from an MSME-registered trader ( a valid Udyam Registration Certificate), timely payment (within 15/45 days) is mandatory for claiming the expense deduction.
So, if you bought goods from an MSME-registered trader ( a valid Udyam Registration Certificate), timely payment (within 15/45 days) is mandatory for claiming the expense deduction.
25 April 2025
SIR KINDLY SEND PDF OF THIS CIRUCLAR IF POSSIBLE
25 April 2025
Revised criteria w.e.f. 01-07-2020: As per Notification no. SO 1702(E) dated 1st June 2020 Definition of Investment in P&M Turnover criteria Micro Enterprise does not exceed 1 crore rupees does not exceed 5 crore rupees Small Enterprise does not exceed 10 crore rupees does not exceed 50 crore rupees
Note: 1. Both criteria should be satisfied
2. Unlike earlier, there is no differentiation between manufacturing and services activities and these criteria are equally applicable for “suppliers” engaged in supply of goods or services.
Section 15 of the Micro, Small and Medium Enterprises Development Act, 2006. Liability of buyer to make payment. Where any supplier supplies any goods or renders any services to any buyer, the buyer shall make payment therefor on or before the date agreed upon between him and the supplier in writing or, where there is no agreement in this behalf, before the appointed day:
Provided that in no case the period agreed upon between the supplier and the buyer in writing shall exceed forty-five days from the day of acceptance or the day of deemed acceptance.
Summarized as follows Type of arrangement for payment Payment time limit specified in section 15 of MSME Act Agreement exists in writing Earlier of a) As per agreement in writing (or) b) 45 days from date of acceptance or deemed acceptance No agreement for payment 15 days following date of acceptance or deemed acceptance
Note : Terms of payment mentioned on the face of invoice/PO to be treated as agreement in “writing”
Read more at: https://taxguru.in/income-tax/section-43b-h-income-tax-act-1961-w-e-f-01-04-2024-ay-2024-25.html
Note: 1. Both criteria should be satisfied
2. Unlike earlier, there is no differentiation between manufacturing and services activities and these criteria are equally applicable for “suppliers” engaged in supply of goods or services.
Section 15 of the Micro, Small and Medium Enterprises Development Act, 2006. Liability of buyer to make payment. Where any supplier supplies any goods or renders any services to any buyer, the buyer shall make payment therefor on or before the date agreed upon between him and the supplier in writing or, where there is no agreement in this behalf, before the appointed day:
Provided that in no case the period agreed upon between the supplier and the buyer in writing shall exceed forty-five days from the day of acceptance or the day of deemed acceptance.
Summarized as follows Type of arrangement for payment Payment time limit specified in section 15 of MSME Act Agreement exists in writing Earlier of a) As per agreement in writing (or) b) 45 days from date of acceptance or deemed acceptance No agreement for payment 15 days following date of acceptance or deemed acceptance
Note : Terms of payment mentioned on the face of invoice/PO to be treated as agreement in “writing”
Read more at: https://taxguru.in/income-tax/section-43b-h-income-tax-act-1961-w-e-f-01-04-2024-ay-2024-25.html
25 April 2025
https://itatonline.org/digest/articles/43bh-explained-briefly/
25 April 2025
OK SIR MANY MANY THANKS
25 April 2025
You are welcome.
28 September 2025
Good luck.....
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