Traders Seek 180-Day Payment Window For MSMEs From New Govt

New Delhi, Jun 8 (KNN) The Federation of All India Vyapar Mandal (FAIVM), a traders' body, plans to urge the new NDA government led by Prime Minister Narendra Modi to extend the time period for payment to Micro, Small and Medium Enterprises (MSMEs) from their buyers to up to 180 days. 

Currently, the payment window is limited to 45 days.

FAIVM President Jayendra Tanna said the changes made to Section 43B of the Income Tax Act, pertaining to delayed payments' crisis for MSMEs, are expected to be repealed in the full budget in July, as hinted by Finance Minister Nirmala Sitharaman.

"The new government should have a uniform policy on payments to suppliers of goods and services within 180 days from the date of invoice issuance instead of the current 45 days," Tanna said, reported FE.

The traders' body argues that the revised payment policy will address the provisions of the Goods and Services Tax (GST) regulations and extend benefits of MSME registration, including the delayed payment mandate, to traders with Udyam registration from the MSME Ministry.

During her recent visit to Ludhiana, Sitharaman had indicated that the government would repeal the changes to Section 43B if MSMEs wanted to continue operating without uncertainty on payment timelines from their buyers.

The Supreme Court had previously rejected a plea by FAIVM and other associations seeking an interim stay or quashing of the new provision in the Income Tax Act.

With Narendra Modi set to be sworn in as Prime Minister on June 9, the traders' body is hopeful that the new government will address their concerns regarding MSME payments.

(KNN Bureau)