Office Address
123/A, Miranda City Likaoli Prikano, Dope
Phone Number
+0989 7876 9865 9
+(090) 8765 86543 85
Email Address
info@example.com
example.mail@hum.com
123/A, Miranda City Likaoli Prikano, Dope
+0989 7876 9865 9
+(090) 8765 86543 85
info@example.com
example.mail@hum.com
The
rule aims to regulate credit practices in the MSME sector and ensure timely
payments to address working capital issues these businesses often face. Under the provision, if an MSME
registered under the MSMED Act of 2006 allows a credit period of over 45 days
to a buyer when selling goods or services, it faces penalties.
Some MSME groups had petitioned the
Supreme Court, arguing the rule could lead larger buyers to avoid registered
small suppliers and instead purchase from unregistered enterprises to bypass
the 45-day limit. However, the Supreme Court declined to admit the petition
challenging Section 43B(h), keeping the tax provision in force.
The
government has aimed the 45-day credit limit at improving MSME working capital
by discouraging delays in payments from buyers. But some businesses argue it is an excessive
regulatory restrictions.
