Section 43B(h) of the Income Tax Act, 1961 (‘IT Act’) was inserted vide Finance Act, 2023, provides that any sum payable by the assessee to a micro or small enterprise, beyond the time limit specified in section 15 of the Micro, Small and Medium Enterprises Development Act, 2006, shall be allowed only in the previous year in which such sum is actually paid. This is irrespective of the previous year in which the liability to pay such sum arose to the assessee according to the method of accounting regularly employed by him. The section was made effective from Assessment Year 2024-15, i.e. in relation to transactions entered into from 01st April, 2023
Lakshmikumaran & Sridharan (LKS), is pleased to organise this session wherein experts will discuss, analyse and guide on practical implementation of clause (h) of Section 43B of the Act and related aspects under GST. The discussion will inter alia cover the following aspects:
- Historical Background of Section 43B of the IT Act
- Certain aspects of MSME Act relevant to the IT Act
- Pre-requisites for applicability of Section 43B(h) of the IT Act.
- Certain specific issues on applicability of the section to
- goods/ services purchased/ availed at the end on the year
- provisions created in the books of accounts
- continuous supplies
GST implications in terms of ITC availment, reversal and applicability of interest, retention of GST on account of delayed payment by buyer
Speakers
- S. Sriram – Partner, LKS
- Darshan Machchhar – Associate Director, LKS
- Dinesh Kukreja – Principal Associate, LKS