1 / 11

Clause 43B(H) - Make Sure to Make Payments within 45 Days to MSMEs.

The blog discusses the recent amendment to Section 43B of the Income Tax Act, 1961, focusing on Clause (H), which mandates timely payments to Micro, Small, and Medium Enterprises (MSMEs) within 45 days. It emphasizes the importance of prompt payments for MSMEs' financial health, outlines the impacts of non-compliance, and offers best practices for businesses, including robust payment processes and engagement with tax experts. Antraweb Technologies Pvt. Ltd.'s MSME module is introduced as a solution to facilitate compliance with Clause 43B(H).

antraweb
Download Presentation

Clause 43B(H) - Make Sure to Make Payments within 45 Days to MSMEs.

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. C l a u s e 4 3 B ( H ) - M a k eS u r et oM a k e P a y m e n t sw i th i n 4 5 D a y st oM S M E s . - A n t r a w e bT e c h n o l o g i e sP v t . L t d .

  2. I m p o rt a n c eo fT i m e l yP a y m e n t s 1 2 I m p a c to nC a s hF l o w L e g a lI m p l i c a t i o n s D e l a y si np a y m e n t sc a na f f e c tth e N o n- c o m p l i an c ewi thC l a u s e 4 3B( H ) c a s hf l o ws, m a k i n gi td i f f i c u l tt om e e t m a yl e a dt op e n a l t i e sa n dd i s a l l o w e d o p e r a t i o n a le x p e n s e sa n ds t a t u t o ry d e d u c t i o n sf o ri n c o m et a x. p a y m e n t s. 3 F i n a n c i a lS t a b i l i t y T i m e l yp a y m e n t sa r ec r u c i a lf o rm a n a g i n gc a s hf l o wa n da v o i d i n gu n e x p e c t e dt a x l i ab i l i t i e s.

  3. A m e n d m e n t si nS e c t i o n 4 3 B ( H ) 1 G o v e r n m e n tA c t i o n T h er e c e n tam e n d m e n tt oS e c t i o n 4 3Bi n c l u d e sC l a u s e (H ) i nth eI n c o m eT axA c t 1 9 6 1 , p r o v i d i n gr e l i e ft oMS M E sf a c i n gp a y m e n td e l a y s. 2 S p e c i a lT a xB e n e f i t s S e c t i o n 4 3B ( H) o f f e r st a xb e n e f i t st os m a l lb u s i n e s s e s, a i d i n gth e i rf i n a n c i alm a n a g e m e n t a n dg r o w th. 3 N e wP a y m e n tT e r m s B u y e r sa r en o wr e q u i r e dt oc l e a rp a y m e n t st oMS ME swi th i n 4 5 d a y sf r o mth ed a t eo f i n v o i c ec r e a t i o n.

  4. I m p a c t so nB u s i n e s s e s D i s a l l o w e dD e d u c t i o n s P e n a l t i e sa n dI n t e r e s t C a s hF l o wM a n a g e m e n t F a i l u r et om a k ep a y m e n t swi th i n 4 5 N o n-c o m p l i a n c ewi thC l a u s e 4 3B( H ) T i m e l yp a y m e n t sa r ec r u c i a lf o r d a y sm a yr e s u l ti nd i s a l l o w e d c anl e a dt op e n a l t i e sa n di n t e r e s t e f f e c t i v ec a s hf l o wm a n a g e m e n ta n d d e d u c t i o n sf o ri n c o m et a x. c ha r g e s, i m p a c t i n gth eb u s i n e s s a v o i d i n gu n e x p e c t e dt a xl i a b i l i t i e s. f i n a n c i a l l y .

  5. B e s tP r a c t i c e sf o rB u s i n e s s e s 1 2 3 R o b u s tP a y m e n tP r o c e s s e s D o c u m e n t a t i o n M o n i t o rC a s hF l o w s B u y e r sm u s te n s u r et i m e l y Ma i n t a i n i n ga c c u r a t er e c o r d so f R e g u l a r l ym o n i t o r i n gc a s hf l o ws p a y m e n t sw i th i nth e 4 5 -d a y p a y m e n t san di n v o i c e si se s s e n t i a l h e l p sa n t i c i p a t ea n dm a n a g e p e r i o dt oa v o i df i n a n c i a l f o ra u d i t sa n dc h e c k s. p a y m e n t se f f e c t i v e l y . i m p l i c a t i o n s.

  6. P r a c t i c a lT i p sf o rB u s i n e s s e s 1 2 O p e nC o m m u n i c a t i o n U s eo fT e c h n o l o g y M a i n t a i no p e nc o m m u n i c a t i o nw i thM S MEs u p p l i e r s Im p l e m e n tp a y m e n tt r a c k i n gs y s t e m sa n ds o f t wa r et o r e g a r d i n ga g r e e m e n t sa n dp a y m e n t st ob u i l dt r u s t. m o n i t o ra n dm a n a g ep a y m e n td e a d l i n e se f f i c i e n tl y .

  7. A n t r a w e b ’ sS o l u t i o nB r e a k - T h r o u g h M S M EM o d u l e U n i q u eF i l t e rO p t i o n A n t r a w e bT e c h n o l o g i e sP v t. L t d. ha sd e v e l o p e dth eMS ME T h em o d u l ei n c l u d e sau n i q u ef i l t e ro p t i o nth ath i g h l i g ht s m o d u l e, f o c u s i n go np r o v i d i n gal i s to fd u ep a y m e n t st o o u t s t a n d i n gp a y m e n t st oM S M Es u p p l i e r s. b u s i n e s s e s.

  8. C o n c l u s i o n : S u p p o rt i n gM S M E s 1 2 F i n a n c i a lS u p p o rt C o n t r i b u t i o nt oE c o n o m y C l a u s e 4 3B ( H ) a i m st os u p p o rtMS M E sb ym a n d a t i n g T i m e l yp a y m e n t sn o to n l yb e n e f i tM S ME sb u ta l s o t i m e l yp a y m e n t sw i th i n 4 5 d a y s, e a s i n gth e i rf i n a n c i a l c o n t r i b u t et oth eo v e r a l lf i n a n c i a lh e a l tha n ds t a b i l i t yo f b u r d e n. b u s i n e s s e s.

  9. R o l eo fM S M E si nE c o n o m i cG r o w th Emplo ymentGener ation IndustrialPr oduction FinancialChallenges MSMEssignificantlycontribut e The ypla yacrucialr olein MSMEsf acechallengesr elat ed t oemplo ymentgeneration, industrialpr oduction, driving t ofinancialaccessandgr o wth opportunitiesduet otheir f ost eringeconomicgr o wth. economicde v elopment. smallersiz e.

  10. E n g a g e m e n tw i thT a xE x p e rt s 1 Guidance Seekingguidancefr omtaxe xpert sensur esathor oughunderstandingofClause 43B(H) andit s implicationsf orthebusiness.

  11. W a n tt oE x p l o r em o r ea b o u tC l a u s e 4 3 B ( H ) C l i c ko nth eL i n kb e l o wf o rth eF u l lB l o g & W e b s i t eV i s i t M a k eS u r et oM a k eP a y m e n t sw i th i n 4 5 D a y st oM S M E s . B e s tT a l l yS o f t w a r eS u p p o rtC u s t o m i z a t i o n & S o l u t i o n sP r o v i d e r

More Related