10 Questions
What is the effective date of the applicability of clause (h) of Section 43B?
April 1, 2024
Under Section 43B(h), what is the time limit for business enterprises to pay MSMEs without a written agreement?
15 days
In case of late payment to an MSME, what is the applicable interest rate according to Section 43B(h)?
Compound interest at the bank rate notified by RBI
Who is entitled to Udyam registration for the benefit of Priority Sector Lending as per the Office Memorandum referred to in the text?
Wholesale and retail traders
What happens if there is a written agreement regarding payment timeline between a business enterprise and an MSME under Section 43B(h)?
Payment should be made within the agreed timeline but not exceeding 45 days
What is the purpose of Section 43B(h) of the Finance Act 2023?
To provide tax deductions for prompt payments to MSMEs
In which assessment year will the change introduced in Section 43B(h) be applicable?
Assessment year 2024–2025
Under Section 43B(h), when is a sum payable by a larger enterprise to an MSME considered deductible?
When it is incurred in the year but paid beyond the deadline
What is a key condition for the applicability of Section 43B(h) regarding transactions between enterprises?
Only the buying enterprise needs to be registered under the MSMED Act, 2006
What does Section 43B(h) aim to address in the MSME industry?
Mitigating working capital scarcity in MSMEs
Test your knowledge about the Finance Act 2023 amendment to Section 43B(h) regarding payments to Micro, Small and Medium Enterprises (MSME). Explore how this amendment impacts working capital in the MSME industry and promotes timely payments to small businesses.
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