Taxmann's MSME Ready Reckoner – Concise | One-stop Reference on Revised MSME Classifications | Section 43B(H) Compliance | Practical Tools—Spanning Udyam Registration | Tax Benefits
About this ebook
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 6th Edition | 2025, updated till 3rd April 2025. This book is authored by Taxmann's Editorial Board, with the following noteworthy features:
• [Enhanced MSME Investment & Turnover Thresholds]
o Incorporates the latest updated criteria for classification (with effect from 1-4-2025) for micro, small, and medium enterprises
o Explains the impact of new thresholds on existing and newly formed businesses
• [Section 43B(h) Explained]
o In-depth commentary on the newly introduced clause (h) in Section 43B of the Income-tax Act, mandating timely payments to Micro & Small Enterprises
o Flowcharts and step-by-step illustrations simplify compliance
• [Compliance Checklists & Practical Tools]
o Buyer-entity checklist for Section 43B(h) compliance
o 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]
o 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]
o Illustrative examples and scenarios clarify complex compliance requirements
o Detailed coverage of how to compute turnover and investment under the new criteria
• [Appendices & Resource Materials]
o Full text of the MSMED Act 2006 and important notifications
o Relevant extracts of Section 43B(h) and other key income-tax provisions
o Ready reference tables, statutory forms, and government circulars
The coverage of the book is as follows:
• Comprehensive MSME Classification
o Revised definition of micro, small, and medium enterprises
o Step-by-step method to calculate investment in plant & machinery/equipment and to compute turnover for each category
o Udyam Registration (mandatory filing, effective date, and classification updates)
• Benefits to Registered MSMEs
o Protection against delayed payments under Section 15 of the MSMED Act and Section 43B(h) of the Income-tax Act
o Interest on delayed payments, TReDS platforms, half-yearly MSME-1 returns by companies, factoring services, etc.
o Government procurement and marketing support schemes
o Pre-Packaged Insolvency Resolution Process for MSME companies/LLPs
• Tax Benefits & Exemptions for Small Businesses
o Presumptive taxation under Sections 44AD, 44ADA, 44AE
o Relaxations in tax audit for businesses transacting 95% or more in digital modes
o Concessional tax rates for small companies and new manufacturing entities
o Other compliance relaxations under the Companies Act 2013
• Legal Forms for MSMEs
o Detailed analysis of various structures: sole proprietorship, partnership, LLP, company, and HUF
o Pros and cons of each form regarding compliance, liability, taxation, and operational flexibility
• Special Emphasis on Micro, Small, and Medium Segments
o 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
o Guidance on why timely IT returns matter for MSEs and proprietors alike
• Start-up Recognition & Benefits
o Coverage of start-up definitions, DPIIT recognition, angel tax exemptions, and synergy with MSME benefits
• Extensive Appendices
o MSMED Act 2006 text
o Notifications on inclusion of wholesale and retail trades, activities not covered, extension of Udyog Aadhaar Memorandum validity, etc.
o List of 358 items reserved for purchase from Micro and Small Enterprises
o 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
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About the author
At the core of Taxmann's commitment to delivering insightful and reliable information is a highly skilled Research & Editorial Team consisting of Chartered Accountants, Company Secretaries, and Lawyers. Guided by Editor-In-Chief Mr Rakesh Bhargava, this team upholds Taxmann's role as a leading content provider in the professional knowledge space.
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