Promoting Prompt Payments in Alignment with the Income Tax Act for MSMEs
2024-05-01 17:34:09
Embracing Timely Payments in Accordance with I-T Act for MSMEs
With the dawn of the new financial year, Surat's textile sector witnesses a gradual return to normalcy as fresh orders trickle in. Traders exhibit renewed confidence, spurred by the imperative of adhering to payment deadlines mandated by the Income Tax (I-T) Act for MSMEs.
In line with statutory requirements, the Federation of Gujarat Weavers’ Welfare Association (FOGWWA) reinforces the importance of honoring a 30-day payment time limit among textile weavers.
Under the I-T Act, payments to small and micro industries must be disbursed within 15 days or, with a written agreement, within 45 days. Delays in payment not only pose concerns for traders but also escalate their tax liabilities.
Acknowledging this, traders have now embraced the 45-day timeframe, seeking to prevent its normalization. FOGWWA issues a circular, underscoring the necessity for weavers to adhere strictly to the 30-day payment rule.
Ashok Jirawala, president of FOGWWA, reaffirms this commitment, emphasizing the cultivation of sound business practices to facilitate seamless transactions for both parties.
While acknowledging the customary practice of mutual agreement on payment terms between weavers and traders, Kailash Hakim, president of the Federation of Surat Trade and Textile Associations (FOSTTA), echoes the sentiment that a timely payment framework serves the best interests of the textile industry.
