Income TAx Alert:

Taxation and Statutary Compaliances News

Amount remaining Unpaid beyond 45 Days to Micro and Small Enterprises will be allowed as a Deductable expenses only in the Year when it is paid.

As per the insertion of clause (g) to section 43B, last year, any amount remaining unpaid as at year end (say 31st March, 2024) to any creditors being any micro or small enterprise, wherher for goods or services, beyond 45 days or lesser period if so agreed or 15 days if nothing specifically agreed, shall be added to your taxable Income and would be allowed as deduction in the year of payment thereof,

hence please ensure that payment to all such creditors is made in time else full tax would be payable on such unpaid amount resulting in huge additional tax liability.

Tax auditors will have to compulsorily report the same in audit report.

Thus keeping such creditors unpaid is a ticking tax bomb.

www.intellexCFO.com, www.startupstreets.com, www.intellexconsulting.com

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Taxation and Statutary Compaliances News

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