With the commencement of the new financial year, Surat’s textile markets are gradually returning to normalcy as new orders begin to flow in. A key contributing factor to this positive development is the revised payment time limits mandated by the Income Tax Act for Micro, Small, and Medium Enterprises (MSMEs). The Federation of Gujarat Weavers’ Welfare Association (FOGWWA) has been proactive in reminding textile weavers to adhere to the stipulated payment time limit of 30 days to avoid penalties.
Under the Income Tax Act, payments to small and micro-industries must be completed within 15 days or within 45 days with a written agreement. Failure to meet these deadlines would result in the delayed amount being treated as a profit, thereby increasing tax liabilities for traders. In response to this, traders have now committed to honouring the 45-day payment window to avert any financial repercussions.
FOGWWA’s President, Ashok Jirawala, emphasised the importance of timely payments for the smooth functioning of business operations. The circular issued by FOGWWA serves as a gentle reminder to weavers to comply with the 30-day payment timeframe. While there is flexibility in negotiation between weavers and traders, maintaining a prompt payment system is deemed crucial for the sustainability of the textile industry, as highlighted by Kailash Hakim, President of the Federation of Surat Trade and Textile Associations (FOSTTA).
