Indian Govt. considering Postponement of Section 43B(h) amid Industry Demands
The Indian government may postpone Section 43B(h) of the Income Tax Act 2013, which was revised to ensure prompt payment for micro and small businesses, after pleas from trade and industry associations across the country.
Union Finance Minister Nirmala Sitharaman recently informed leaders of several trade and industry associations that the new payment rule will be postponed.
The team that met last week was led by C R Patil, a member of parliament from Navsari (Gujarat), and included representatives from the Confederation of All India Traders (CAIT), the Federation of Surat Textile Traders Association (FOSTTA), and a few other trade associations.
Following the discussion with the finance minister, trade and industry associations, primarily from Ahmedabad and Surat in Gujarat, quickly communicated the government’s pledge and message to their members and the media. The Textile Association of Ahmedabad and Surat (TAAS) issued a press statement following the meeting last week, stating that the new provision might be postponed for a year, as promised by the finance minister.
However, TAAS noted that the government has yet to make an announcement about this situation. As a result, traders and business owners should proceed with caution while making commercial judgements.
Trading activities have been hampered to some extent since January 2024 due to the adoption of the new payment rule. The clause went into effect in the current fiscal year 2023-24, which ends on March 31, 2024. Trading activity has slowed across the country as buyers will be unable to complete payments within the time frame specified in the provision for the year in question.
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