FCC

TN Industries and MSMEs urge new govt for growth reforms

2024-06-11

S Vasudevan, the General Secretary of TANSTIA, expressed anticipation for further reforms in the MSME policy to facilitate ease of doing business. He also urged not to compromise on the amendment to Section 43B of the Income Tax Act, proposing the addition of a new clause (h) to address delayed payments encountered by MSMEs, impeding the flow of working capital and overall business growth.

Additionally, it was suggested to mandate the use of the TReDS platform for all PSUs and large industries for payments to MSMEs. Under this proposal, buyers would bear the interest incurred beyond 45 days, facilitating uninterrupted transactions with MSMEs.

Regarding the implementation of the new Income Tax Act provision 43B(h), Mohan emphasised the need for discussion and modification, ensuring that the 45-day payment to SMEs remains unaffected, particularly exempting capital goods buyers from the Act.

Furthermore, the Tamil Nadu Small and Tiny Industries Association advocated for allowing MSMEs to file their GST returns monthly and remit GST payments quarterly. This adjustment is proposed to alleviate the financial strain caused by delayed payments from corporate and PSU buyers, enabling MSMEs to manage their finances more effectively.