Skip to main content

I.T. Rules amended to enforce prompt payment for supplies taken from small & medium enterprises

India Business

In a recent amendment to Income-Tax Rules, delayed payments to MSEs will incur payment of interest at 18 % per annum compounded annually; in addition it will entail liability to pay income-tax on such interest.

“Delayed payments to MSEs will not only entail payment of interest to the affected MSEs at 18% p.a. compounded monthly (effective rate 19.56%) but will also entail liability to pay income-tax (at as much as 33.99% presently) on such interest, which is inadmissible as expenditure deductible from taxable income,” reads a notification released by the Ministry of Finance, Government of India. 

The decision would assuage millions of small and medium enterprises who have been facing payment default to their services. 

According to Micro, Small and Medium Enterprises Act, 2006, manufacturing enterprises which investment in equipment is up to Rs 10 lakh are Micro, above Rs10 lakh and up to Rs 2 crore are Small; above Rs.2 crore and up to Rs. 5 crore are Medium. 

Manufacturing

  • Micro Enterprises – investment up to Rs. 25 lakh
  • Small Enterprises – investment above Rs.25 lakh & up to Rs. 5 crore
  • Medium Enterprises – investment above Rs. 5 crore & up to Rs.10 crore

Enterprises which are in the services, investment up to Rs. 10 lakh are termed Micro, above Rs.10 lakh & up to Rs. 2 crore – Small, and above Rs.2 crore and up to Rs. 5 crore are Medium. 

Service

  • Micro Enterprises – investment up to Rs.10 lakh
  • Small Enterprises – investment above Rs. 10 lakh & up to Rs. 2 crore
  • Medium Enterprises – investment above Rs.2 crore & up to Rs. 5 crore


Please subscribe: receive email. Get Free alert on your mobile! Click here.

Subscribe:


Click on the E-World label below this post to read all the articles related to internet world.

You can even subscribe to this feed [E - World]. Subscribe to E - World by Email. You will not receive any other feeds.

Thanks for visiting. Subscribe to E - World by Email.

Labels

Labels:

Comments

Post a Comment

We all love comments. It is moderated

Popular posts from this blog

Sri Sri Bhubaneshwar Sadhu Thakur

By Ranita Sinha, Kolkata Sri Sri Bhubaneshwar Thakur, the great saint of the Bishnupriya Manipuri Community was born on 26th October, 1871, in a remote village of Cachar district called Baropua in the state of Assam. He was born to a Xatriya Manipuri family. His father Sri Sanatan Pandit was a Sanskrit teacher and mother Srimati Malati Devi, a house wife. Sadhu Baba from his childhood was indifferent to all worldly happenings. He was engrossed in chanting the name of Lord Krishna. Along with other students of his age, Sadhu Baba started taking lessons of grammar and other spiritual literature from his father. At a very young age he lost his mother but he was brought up with utmost love and care by his step mother. At the age of eighteen, Sadhu baba lost his father, so, to continue his spiritual education under the guidance of Rajpandit Mineshwas Swarbabhwam Bhattacherjee, he went to Tripura. But within one year he made up his mind to visit all the holy places and as such he took permis...
9 comments
Read more

The 'Star' Krishankant Sinha of Space City Sigma

By RK Rishikesh Sinha, New Delhi It is a myth that the all-knowing Internet knows everything. One such myth relates to old television stuff aired on Doordarshan before 1990. Search in Google “Space City Sigma”, the search engine would throw up reminiscent results from the people who still long for those days. Those days were really golden days. Krishankant Sinha in the role of Captain Tara in Space City Singma For those who have watched Doordarshan some 15 to 20 years back, am sure they will have nostalgic memories of it. The days when possessing a now ubiquitous looking television set was a luxury. It was a neighbour’s envy product. It was a visual product to showoff, to flaunt that we have a television set . Those were the days when black and white, locked television was rarely found in homes. The days became immortal for teleserials like Ramayana, Mahabharata, Swami’s Malgudi Days (Ta-Na-Na-Na…), Ek-Do-Teen-Char (Title song: Ek do teen char, chaaro mil ke saath chale to ...
26 comments
Read more

Bishnupriya Manipuri Development Council: Few Pertinent Questions (Part I)

By Rebati Mohan Sinha On last 25th March 2010 there was an announcement in the floor of the House that the Government of Assam has agreed on principle to form three separate Social Economic Development Councils for Bishnupriya Manipuri, Nath Yugi and Maimal. And now the Cabinet Committee has given its nod. It will be placed in the House (not yet placed) and once it is passed, then a Ministerial Committee would consult the stake holders i.e. these three communities, regarding their aspirations and would send its recommendation accordingly to the Central Government for further action within the next two months. The two months time since been elapsed, even then the bill is yet to show its face in the House. The Ministerial consultation is quite far away. Why am I repeating the same thing now is because of a section of Bishnupriya Manipuri started quarreling for the share of so-called power, from now on, without knowing the outcome of the development which is taking place in the...
34 comments
Read more