SC Refuses to Hear Plea Against 45-Day Payment Rule U/S 43B(h)

Federation of All India Vyapar Mandal Vs Union Of India & Ors. (Supreme Court of India)

The Supreme Court (SC), in a recent decision, declined to hear a plea filed by Micro and Small Enterprises (MSEs) challenging the 45-day payment rule under Section 43B (h) of the Income Tax Act. This provision imposes guidelines on the credit extension practices of MSEs, prohibiting them from providing credit to buyers for more than 45 days. Additionally, it mandates that dues owed to MSEs must be settled within this timeframe.

Under this provision:

• Failure to clear dues within the stipulated 45-day period incurs penalties.

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