The Punjab Accountants Association, registered under the Societies Registration Act, 1860, has submitted a representation to Finance Minister Nirmala Sitharaman, expressing appreciation for her support of economic growth and businesses. However, the association highlights concerns regarding the recent budget’s omission of amendments to Section 43(B)(h) of the Income Tax Act, which affects MSMEs by imposing stringent payment timelines. The association proposes extending these timelines to accommodate operational realities and ensuring the provision’s uniform application across all taxpayer categories, including traders, manufacturers, and service providers. They also emphasize the impact of Section 44AD, which exempts certain taxpayers from the payment timeline, creating operational challenges for others. The association urges revisions to Section 43(B)(h) and a review of Section 44AD to foster a fair and efficient business environment, ultimately promoting economic resilience and growth for MSMEs in India.
THE PUNJAB ACCOUNTANTS ASSOCIATION
(Regd, Vide No. 304 of 2019-20 under the Societies Registration Act, 1860)
OFFICE: R. K. ASSOCIAATES, SEHDEV, MARKET, JALANDHAR CITY
E-mail: [email protected], Mob: 98151-98051, 98780-20386, 98153-23059
Ref. No.: ………………..
Dated: 27-07-2024
R E P R E S E N T A T I O N
Repeated Proposals for Improving Tax Compliance and Reducing Taxpayer Burden
To
Mrs. Nirmala Sitharaman,
The Hon’ble Finance Minister
Ministry of Finance
Government of India
New Delhi
Subject: Urgent Request for Amendment to Section 43(B)(h) for MSMEs
Respected Madam,
We, the undersigned representatives of The Punjab Accountants Association (Regd), wish to express our sincere appreciation for your unwavering commitment to fostering economic growth and supporting businesses across our nation. As active participants in discussions related to GST, Income Tax, and other financial matters, we had submitted several well-considered suggestions before the budget, with the hope that they would be thoughtfully incorporated.
Regrettably, the recent budget did not fully address our concerns, particularly with regard to Section 43(B)(h) of the Income Tax Act. This provision pertains to the timely payment of dues, which significantly impacts Micro, Small, and Medium Enterprises (MSMEs).
Please allow us to elaborate on our recommendations:
> Payment Timelines:
- The existing requirement of making payments within 15 or 45 days poses practical challenges for MSMEs.
- We propose extending the payment timeline to a more reasonable period, considering the operational realities faced by businesses.
> Inclusion of All Taxpayer Categories:
- The provision should apply uniformly to all categories of taxpayers, including traders, manufacturers, and service providers.
- Excluding certain classes disrupts the supply chain and creates inequities.
> Impact of Section 44AD:
- Taxpayers who file returns under section 44AD do not have any liability to make payments within the specified time limit.
- However, audited taxpayers are subject to this requirement, leading to operational challenges and disruptions.
> Promoting Smooth Operations:
- To ensure a seamless system, all taxpayers—regardless of size—should be required to make payments within the stipulated time under section 43BH.
- Exemptions granted to specific trader classes or members should not hinder the overall functioning of the chain system.
In light of the above, we earnestly request the following actions:
AMEND SECTION 43(B)(h):
√ Consider revising the payment timelines to better align with practical business needs.
√ Ensure uniform application across all taxpayer categories.
REVIEW SECTION 44AD:
√ Evaluate its impact on the supply chain and explore ways to mitigate disruptions.
We firmly believe that these changes will foster a conducive environment for MSMEs, promote economic resilience, and enhance the overall business ecosystem. Your visionary leadership remains pivotal in ensuring the prosperity of our great nation.
Thank you for your attention to this matter. We stand committed to supporting policies that empower businesses and contribute to India’s growth trajectory.
Sincerely yours,
(Dharminder Sikka)
President TPAA
(Varinder Sharma)
General Secretary TPAA
and all members of
THE PUNJAB ACCOUNTANTS ASSOCIATION
