MSMEs can continue to avail of all non-tax benefits for three years

New Delhi [India], October 19 (ANI): The Ministry of MSME on Wednesday in a notification said an enterprise shall continue to avail of all non-tax benefits of a category the MSME was in before a re-classification, for a period of three years from the date of such upward change.
This re-classification was in case of an upward change in terms of investment in plant and machinery or equipment or turnover or both.
The government said this decision had been taken after due deliberations with MSME stakeholders and was in line with the Aatmanirbhar Bharat Abhiyan. The Ministry of MSME has allowed those registered micro, small and medium enterprises (MSMEs) to continue to avail of non-tax benefits for three years, instead of one year, in case of an upward graduation in their category and consequent reclassification. Non-tax benefits include benefits of various schemes of the government, including public procurement policy, delayed payments, etc.
The MSME public procurement policy rests on the core principles of competitiveness, adhering to sound procurement practices and the execution of orders for the supply of goods and services under a system that is fair, equitable, competitive, transparent and cost-effective.
One of the policies worth mentioning is the policy of delayed payments. MSMEs constantly face the risk of delayed payments which in turn disturbs their entire business.
To protect registered companies, the Supreme Court of India has mandated that any buyer of goods or services from registered MSMEs is required to make the payment on or before the agreed date of payment or within 15 days from the day they had accepted the goods or services. (ANI)