Interviews
Delayed payments major concern for MSEs
21 Dec '07
1 min read
One of the major issues of concern for the promotion and development of the micro and small enterprises has been the delayed payments from the buyers.
To address this issue, the erstwhile “The Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993” as amended in 1998 was further strengthened and subsumed in the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006, which has since been implemented from 2nd October 2006.
Two of the effective measures provided under the provisions of said Act are – (i) “Requirement to specify unpaid amount with interest in the annual statement of accounts” (under Section 22) and (ii) “Interest not to be allowed as deduction from income” under Income-Tax Act, 1961 (under Section 23).
The Government has accordingly notified necessary Instructions vide CBDT Instruction No.12/2006 on 14 December 2006 and Ministry of Corporate Affairs Notification No: G.S.R.719 (E) dated 16 November 2007, so that the provisions of the MSMED Act, 2006 providing measures to check delayed payments to micro and small enterprises (MSEs) are implemented in letter and spirit.
The measure would go in a long way to minimize the problem being faced by MSEs in respect of delayed payments.
To address this issue, the erstwhile “The Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993” as amended in 1998 was further strengthened and subsumed in the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006, which has since been implemented from 2nd October 2006.
Two of the effective measures provided under the provisions of said Act are – (i) “Requirement to specify unpaid amount with interest in the annual statement of accounts” (under Section 22) and (ii) “Interest not to be allowed as deduction from income” under Income-Tax Act, 1961 (under Section 23).
The Government has accordingly notified necessary Instructions vide CBDT Instruction No.12/2006 on 14 December 2006 and Ministry of Corporate Affairs Notification No: G.S.R.719 (E) dated 16 November 2007, so that the provisions of the MSMED Act, 2006 providing measures to check delayed payments to micro and small enterprises (MSEs) are implemented in letter and spirit.
The measure would go in a long way to minimize the problem being faced by MSEs in respect of delayed payments.
Press Information Bureau Government of India
Popular News
Leave your Comments
Editor’s Pick
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
