CICU decries amendment in MSME Act
The new amendment proposes that all MSMEs must make their due payment within 45 days of a transaction or else it will not be considered a business transaction and as such will be taxed 30 percent, according to CICU president Upkar Singh Ahuja
The Chamber of Industrial and Commercial Undertaking (CICU) executive committee on Tuesday held an urgent meeting on the amendment in chapter 43B of the Micro Small and Medium Enterprise (MSME) Act.
The new amendment proposes that all MSMEs must make their due payment within 45 days of a transaction or else it will not be considered a business transaction and as such will be taxed 30 percent, according to CICU president Upkar Singh Ahuja.
The businessmen, Ahuja said, wanted the amendment to include a clause stating that if an MSME gets into a contract with a customer that mandates payment beyond the stipulated period of 45 days it should be considered a business transaction as well.
He agreed some members in the meeting expressed support for the new amendment though.
“We will send a representation to the ministry of MSMEs to discuss the changes,” he said.
