In a significant move hailed by the business community, the central government has granted a one-year extension in the deadline for compliance with Income Tax Section 43B(H) concerning Micro, Small, and Medium Enterprises (MSMEs). This decision has been met with widespread relief among businessmen across the country.
Under Section 43B(H) of the Income Tax Act, the provision stipulating the payment timeline for goods purchased from MSME units within 15 or 45 days had been introduced, effective from April 1, 2023. However, as the current financial year draws to a close, concerns had been mounting within the business industry regarding the impact of this provision.
The business landscape had been witnessing disruptions, ranging from increased tax burdens to the imposition of penal provisions, causing uncertainties in financial transactions and affecting newly established trades.
Responding to representations made by businessmen from Gujarat to the Finance Minister in Delhi, the government has taken a positive step by granting a one-year grace period for the implementation of this provision. This decision has been warmly welcomed by businessmen, who view it as a much-needed respite.
With the extension of the deadline, businesses can now operate with a greater sense of normalcy, alleviating the pressures and uncertainties surrounding financial transactions. This move is expected to foster a conducive environment for business operations and facilitate smoother trade practices.
The decision reflects the government's commitment to supporting the MSME sector and promoting ease of doing business in the country. By providing this extension, the government has demonstrated responsiveness to the concerns of the business community and its willingness to facilitate their growth and development.
Overall, the one-year extension in the deadline for Income Tax Section 43B(H) is poised to have a positive impact on businesses, offering them the necessary breathing space to navigate through the current economic landscape with greater confidence and stability