Quick Summary
In a significant move aimed at bolstering the financial health of micro, small, and medium enterprises (MSMEs) in India, the government has announced the implementation of a stringent rule requiring payments to MSMEs to be settled within 45 days. Failure to comply with this regulation will result in
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
BEST VALUE
2 YEAR PLAN
3,499
(Excl. of GST ₹629)
1 YEAR PLAN
1,999
(Excl. of GST ₹359)
3 MONTHS PLAN
999
(Excl of GST ₹179)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
The new rule requiring payments to MSMEs to be settled within 45 days comes into effect from April 1, 2024.
Companies must make payments to their MSME suppliers within 45 days of the due date.
Failure to adhere to the 45-day payment timeline will result in companies being ineligible to claim tax deductions on the outstanding amount, making it subject to taxation.
According to finance ministry officials, any potential alteration to this rule can only occur during the Union Budget in July, as it requires parliamentary scrutiny and approval.
The rule aims to ensure prompt tax compliance, maintain uninterrupted cash flow for MSMEs, and bolster their economic sustainability.
TReDS is a government-implemented measure that facilitates prompt receivables for MSMEs by enabling the discounting of their invoices, helping them access timely funds.
CAclubindia
