10/02/2023
The recent budget i.e., that in Feb 2023, has given a good relief to the MSMEs by allowing the scheme of Presumptive Taxation until the revenues of Rs 3 cr and Rs 75 lakhs for small businesses and professionals respectively. This means that upto the above revenues, tax audit as per the IT Act is not applicable, if the profits are declared more than the specified percentages. (6% and 50%). Kudos to government for easing out the taxation norms for small businesses.
Also, businesses with MSMEs as vendor partners are allowed to take a deduction of bills from MSMEs, only if they are PAID, not just accounted or received. This provision is certainly a welcome move and will leave MSMEs with their funds flowing better. Going forward, vendor management ( MSME or not, tax returns filed for the last two years or not, GST return filing etc.) will become an critical task for all businesses..
Thank god ! I am also an MSME.
