CICU Voices Concern Over Proposed Amendments In IT Act

New Delhi, Jan 31 (KNN) The executive committee of the Chamber of Industrial and Commercial Undertaking (CICU) convened an urgent meeting on Tuesday to address the proposed amendment in Chapter 43B of the Income Tax (IT) Act.

The recently proposed amendment suggests that all MSMEs must settle their due payments within 45 days of a transaction; otherwise, the transaction will not be recognised as a business transaction and will incur a 30 per cent tax, as outlined by CICU President Upkar Singh Ahuja.

Ahuja revealed that business leaders advocated for the amendment to incorporate a provision stating that if an MSME engages in a contract requiring payment beyond the specified 45-day period, it should still be considered a business transaction.

While some members expressed support for the proposed amendment during the meeting, Ahuja acknowledged varying opinions.

He stated, “We will submit a representation to the Ministry of MSMEs to engage in discussions about the proposed changes.”

(KNN Bureau)