MSME 45-day payment rule: Traders to urge new NDA govt for up to 180-day time limit

FAIVM plans to request the new NDA government to extend MSME payment timelines to 180 days from the current 45 days. President Jayendra Tanna emphasized the need for uniform payment policies, urging for changes to Section 43B of the Income Tax Act. \r

Tanna stressed the importance of extending MSME benefits, including delayed payment mandates, to traders with Udyam registration. Sitharaman hinted at repealing changes to Section 43B in the upcoming budget, addressing concerns over payment uncertainties for MSMEs. \r

Despite Supreme Court rejection, FAIVM continues its advocacy. The government's new clause, effective April 1, 2024, requires MSME expenses to be paid within 45 days to be eligible. Narendra Modi is set to assume office as Prime Minister on June 9.