Excelsior Correspondent
SRINAGAR, Feb 28: The Federation of Chambers of Industry Kashmir (FCIK) today urged the Central Government to defer the implementation of new regulations introduced under Section 43B of the Income Tax Act.
The spokesperson of FCIK emphasized the necessity for comprehensive consultations with stakeholders to ensure a thorough understanding of the implications and compliance requirements of these rules. He said FCIK highlighted the potential ramifications for Micro, Small and Medium Enterprises (MSMEs). “The newly amended rules mandate buyers to settle outstanding payments to MSMEs within 45 days, failure of which would result in significant tax implications. Furthermore, all companies and trade entities are instructed to clear previous dues to MSMEs by March 31, 2024, under penalty of taxation,” he said.
He said FCIK underscored the challenges faced by MSMEs in Jammu and Kashmir, where substantial payments from Government departments, public sector undertakings (PSUs), and other buyers remain withheld for extended periods. “Despite existing legislation aimed at addressing delayed payments, MSMEs continue to struggle for timely compensation, often resorting to legal recourse for resolution,” he said.
He said the industry body called for more stringent measures to compel Government entities to adhere to payment timelines, emphasising the critical role of timely cash flow for the sustainability of MSMEs.
Follow our WhatsApp channel
