It is
proposed to bring payments made to micro and small (MSME) businesses under the
purview of section 43B of the Income Tax Act 1961.
The move is to encourage prompt
payments to MSME businesses.
As a result, expenditure can be
claimed only when the payments are actually made to MSMEs.
The expenditure can also be claimed
on an accrual basis only if the payment is made within the time frame
(Usually 45 days from the date of invoice) required by the Micro, Small and
Medium Enterprises Development Act, 2006.
No comments:
Post a Comment