Whether Rule of 15 days / 45 days payment under Section 43B(h) is extended by one year?
Section 43B (h) provides for the payment to MSME within a time period of 15 days or 45 days failing which the amount will be disallowed under the Income Tax Act-1961.
Newly added provision i.e. section 43B (h) mas disrupted the entire business operation all over the country. The business has almost come to standstill in view of crucial tax implications. The impact is all the serious as this FY 2023-24 is the first year when the law will be enforced. The impact is further increased in view of the fact that purchase from trader has got immunity from Section 43B(h). However, the traders purchasing from Micro or small enterprises will be required to make the payment as per section 43B(h)
Whether it is deferred by one year or will it be deferred is the most important question as of now.
There are lot of association and organisation which has taken the hard stand against the new provision. Numerous representation have been give for its relaxation or deferment?
There are few businessmen who have started returning goods purchased from Micro & Small enterprises so as to avoid the consequence of section 43B(h). Further, there are various business houses who have taken the call to stop the purchases from Micro & Small enterprises.
With this, whether it will continue to stay in the Income Tax Act-1961 or not is the net question raised by many.
There are wide spread news in circulation that the provision of section 43B(h) has been deferred by one year. The news has spread pursuant to the delegation of few businessmen and textile association of Surat which has met FM Smt. Nirmala Sitharaman with a request to defer its implementation The said association is claimed to have issued a statement that they have got an assurance for deferment of the provision of section 43B(h).
However, as of now, no such official statements has been made from the office of the Finance Minister. The news about the deferment of provision of section 43B (h) are just rumours.
According to source, the Government has not taken any call to defer the provision of section 43B(h). The only fact which can make the Government to defer the implementation of section 43B(h) is the election time which is just in the next month after March ending. The PMO interference is only factor which can ensue the deferment of section 43B(h).