Disallowance u/s 43B(h) – Non-payment of dues to MSME

Since such rule is only applicable to Manufacturers and Service providers & not traders, will hospitals be also mandated to make payments within specified time limit?

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Quick Summary
This discussion clarifies that hospitals, as service providers, are subject to the disallowance provisions under Section 43B(h) of the Income Tax Act. This means they must adhere to the specified time limits for payments to MSME suppliers, or face potential disallowance of the expense.

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Hospital is a service provider and hence disallowance u/s 43B(h) applicable for hospital also.

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