Taxmann MSME Ready Reckoner Edition April 2025

Taxmann MSME Ready Reckoner Edition April 2025

Taxmann MSME Ready Reckoner Edition April 2025

Description

MSME Ready Reckoner is a comprehensive, up-to-date guide to help micro, small, and medium enterprises (MSMEs) understand the evolving legal, tax, and regulatory environment. This edition incorporates the most recent changes under the MSMED Act, 2006 (including revised composite criteria for classification) and the Income-tax Act 1961 (especially the newly introduced clause (h) in Section 43B relating to prompt payments to MSE suppliers). It clarifies how to utilise the enhanced investment and turnover limits for MSMEs while offering step-by-step guidance, compliance checklists, illustrations, and case studies to manage all aspects of running an MSME in India.

This book is intended for the following audience:

• MSME Entrepreneurs & Owners looking for clear explanations on compliance, benefits, and strategic tax planning
• Professionals & Advisors (CAs, CS, Advocates, Tax Practitioners, Company Secretaries, Consultants) needing an authoritative desk reference on MSME taxation and regulatory requirements
• Corporate Buyers & Larger Business Entities who source goods and services from micro and small enterprises must comply with Section 43B(h) for prompt payments
• Start-ups & New Businesses seeking to understand MSME registrations, benefits, and how to leverage various government schemes
• Academicians & Researchers focusing on the practical dimensions and legal framework of India’s MSME sector

The Present Publication is the 6^th Edition | 2025, updated till 3^rd April 2025. This book is authored by Taxmann’s Editorial Board, with the following noteworthy features:

• [Enhanced MSME Investment & Turnover Thresholds]
• Incorporates the latest updated criteria for classification (with effect from 1-4-2025) for micro, small, and medium enterprises
• Explains the impact of new thresholds on existing and newly formed businesses
• [Section 43B(h) Explained]
• In-depth commentary on the newly introduced clause (h) in Section 43B of the Income-tax Act, mandating timely payments to Micro & Small Enterprises
• Flowcharts and step-by-step illustrations simplify compliance
• [Compliance Checklists & Practical Tools]
• Buyer-entity checklist for Section 43B(h) compliance
• Supplier-side checklist on how Micro & Small Enterprises (MSEs) can protect themselves against delayed payments and invoke legal remedies
• [Divisional Structure with Topic-focused Coverage]
• Each Division targets a major thematic area—definition & registration, benefits under MSME laws, special benefits for small businesses, choice of legal forms, etc.
• [Practical Cases & Illustrations]
• Illustrative examples and scenarios clarify complex compliance requirements
• Detailed coverage of how to compute turnover and investment under the new criteria
• [Appendices & Resource Materials]
• Full text of the MSMED Act 2006 and important notifications
• Relevant extracts of Section 43B(h) and other key income-tax provisions
• Ready reference tables, statutory forms, and government circulars

The coverage of the book is as follows:

• Comprehensive MSME Classification
• Revised definition of micro, small, and medium enterprises
• Step-by-step method to calculate investment in plant & machinery/equipment and to compute turnover for each category
• Udyam Registration (mandatory filing, effective date, and classification updates)
• Benefits to Registered MSMEs
• Protection against delayed payments under Section 15 of the MSMED Act and Section 43B(h) of the Income-tax Act
• Interest on delayed payments, TReDS platforms, half-yearly MSME-1 returns by companies, factoring services, etc.
• Government procurement and marketing support schemes
• Pre-Packaged Insolvency Resolution Process for MSME companies/LLPs
• Tax Benefits & Exemptions for Small Businesses
• Presumptive taxation under Sections 44AD, 44ADA, 44AE
• Relaxations in tax audit for businesses transacting 95% or more in digital modes
• Concessional tax rates for small companies and new manufacturing entities
• Other compliance relaxations under the Companies Act 2013
• Legal Forms for MSMEs
• Detailed analysis of various structures: sole proprietorship, partnership, LLP, company, and HUF
• Pros and cons of each form regarding compliance, liability, taxation, and operational flexibility
• Special Emphasis on Micro, Small, and Medium Segments
• Dedicated Divisions focusing on distinct classification challenges, Udyam filing, and benefits unique to Micro, Small, and Medium categories
• Importance of ITR Filing for Small Businesses
• Guidance on why timely IT returns matter for MSEs and proprietors alike
• Start-up Recognition & Benefits
• Coverage of start-up definitions, DPIIT recognition, angel tax exemptions, and synergy with MSME benefits
• Extensive Appendices
• MSMED Act 2006 text
• Notifications on inclusion of wholesale and retail trades, activities not covered, extension of Udyog Aadhaar Memorandum validity, etc.
• List of 358 items reserved for purchase from Micro and Small Enterprises
• Key references to the Mediation Act 2023

The structure of the book is as follows:

• Introductory Divisions focusing on the new MSME definitions, classification criteria, and registration under Udyam
• Core MSME Benefits & Compliance detailing benefits for registered and even unregistered small businesses, including tax incentives, TDS/TCS, delayed payment remedies, and disclosure requirements
• Legal Forms & Their Implications, offering an overview of each business constitution—sole proprietor, partnership, LLP, company, HUF—and how they intersect with MSME provisions
• Segment-specific Divisions dedicated exclusively to Micro, Small, and Medium enterprises, clarifying distinct compliance frameworks for each
• ITR & Start-up Guidance, illustrating the synergy between MSME benefits and start-up recognition under the DPIIT
• Reference Appendices compiling essential statutes, notifications, forms, and official memoranda