Date: 02/04/2024

Exporters urge PM for exemption from MSME payment rule

Exporters have urged the PM for exemption from the new 45-day payment rule for micro, small and medium enterprises (MSMEs) that was brought in through amendments in the Income Tax Act, saying that time taken for overseas shipments and payment realisation would make it difficult to adhere to it. In a letter to Prime Minister Mr Narendra Modi, the Federation of Indian Export Organisations (FIEO) and 15 sector-specific export promotion councils said that as they receive payments for their sales after a time lag of 120 days, it will be difficult for them to meet the 45-day deadline for their MSME suppliers. If complete exemption is not possible, then exporters have asked for an extension of the period for payment to MSME suppliers to 120 days from 45 days, and keeping supplies to MSME exporters out of the scope of the provision, as per a report.
Source: Exim News Service: New Delhi, April 1