Indore (Madhya Pradesh): Chartered accountant Abhishek Gang, has said that if a buyer doing business with a registered enterprise fails to make the payment within the prescribed period - which is a maximum of 45 days, then the buyer will be charged compound interest at the rate of three times the rate of bank interest on the outstanding amount. The buyer will be responsible for making payment to the registered entrepreneur.
Gang was addressing a seminar organised by TPA and Indore CA branch, here on Wednesday, to discuss the benefits of MSME registration and the provisions of the Income Tax Act in this regard. Gang said that the contribution of MSME in the total GDP of the country is 30%, hence the MSME department has a big responsibility towards the country. He said that benefits of the subsidies would be deposited in the bank account given at the time of registration.
Small businesses that are registered under Udyam can avail various government schemes. They can access subsidies that are specifically designed for small and medium-sized enterprises. This includes Credit-Linked Capital Subsidy Scheme, Technology Upgradation Fund Scheme, Marketing Assistance Scheme and others.
Gang said that now such taxpayers whose books of accounts are audited or such taxpayers who have income from business and do not pay income tax on estimated basis, will have to pay tax on the goods purchased or services received during their business. Deduction of the expenses will be available only if payment is made within the time limit given under the MSME Act. According to the MSME Act, if any person other than a trader is registered as a micro or small enterprise in MSME, then on receiving service or making purchase from such trader, the buyer must pay within 15 days, if there is no contract with such person.
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