The MSME Ministry is amending the MSME Development Act, 2006 for a more effective solution to the delayed payment issue faced by MSMEs
The MSME Ministry is amending the MSME Development Act, 2006 for a more effective solution to the delayed payment issue faced by MSMEs
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Jul 03, 2024
Mohammed Ramees
According to a report by The Indian Express last week, the amendment is to “improve mechanisms for managing disputes related to delayed payments”
According to a report by The Indian Express last week, the amendment is to “improve mechanisms for managing disputes related to delayed payments”
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“We want to bring about the first amendment to the MSME Act that was passed in 2006 in order to make the provisions of the Act more conducive to the requirements of MSMEs,” the report quoted MSME Ministry Additional Secretary Dr Rajneesh as saying on June 27 at an event
“We want to bring about the first amendment to the MSME Act that was passed in 2006 in order to make the provisions of the Act more conducive to the requirements of MSMEs,” the report quoted MSME Ministry Additional Secretary Dr Rajneesh as saying on June 27 at an event
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Rajneesh added that the ministry is partnering with the Ministry of Law and Justice and experts at National Law Universities (NLUs) to design the amendments
Rajneesh added that the ministry is partnering with the Ministry of Law and Justice and experts at National Law Universities (NLUs) to design the amendments
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The need for amendment comes in the wake of the recent changes made to the Income Tax act with a new clause under Section 43B to address delayed payments issue
The need for amendment comes in the wake of the recent changes made to the Income Tax act with a new clause under Section 43B to address delayed payments issue
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The clause allows expenses to buyers on MSME invoices only if paid within 45 days in the year of actual payment instead of the year when it was incurred as an expense
The clause allows expenses to buyers on MSME invoices only if paid within 45 days in the year of actual payment instead of the year when it was incurred as an expense
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Talking to MSMEs in Ludhiana in May this year, FM Nirmala Sitharaman had said the government will repeal the changes if MSMEs want to continue operating with uncertainty on payment timelines from their buyers
Talking to MSMEs in Ludhiana in May this year, FM Nirmala Sitharaman had said the government will repeal the changes if MSMEs want to continue operating with uncertainty on payment timelines from their buyers
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Meanwhile, the MSME ministry is also looking at overhauling the Samadhaan portal into a comprehensive online resolution platform from currently tracking the disputes in delayed payments
Meanwhile, the MSME ministry is also looking at overhauling the Samadhaan portal into a comprehensive online resolution platform from currently tracking the disputes in delayed payments
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Launched in October 2017, 1.97 lakh delayed payment applications involving Rs 44,469 crore have been filed by MSMEs, as per the Samadhaan portal data
Launched in October 2017, 1.97 lakh delayed payment applications involving Rs 44,469 crore have been filed by MSMEs, as per the Samadhaan portal data