Industry concerned over limiting the time for payment to 45 days
the hindu business line
MSME News Introduction
MSME News: MSME stands for Micro, Small, and Medium Enterprises. MSMEs refer to the many small businesses in India that make and supply different products.
For example :- a unit that makes buttons and zips for the garment industry. Or a food processing unit that makes materials for dairy companies.
Recently, an industry body called TASMA requested a longer payment time for MSMEs.
Also read:- “Decoding the 45-Day MSME Payment Rule: Confusion, Concerns, and a Glimpse into the Future“
TASMA represents textile companies. MSMEs supply various materials to textile units.
TASMA asked that textile firms be given 90 days to clear payments to MSME suppliers. Right now they get a maximum of 45 days.
The reason is – textile companies also get very long payment times from their buyers. So by giving MSMEs more time to pay MSMEs, cash flows can be better managed across the industry.
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In simple words:
- MSMEs: Small enterprises that supply materials to bigger companies
- TASMA: Group representing textile industry
- TASMA wants 90 days instead of 45 days payment time for MSMEs
- As textile units also get paid late by their buyers
- This will help manage cash flows for the whole textile sector
Read More : MSME Business News And SME Business News
Main Source: https://www.reuters.com/world/india/india-finance-minister-presents-interim-budget-202425-2024-02-01/
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What is the full form of TASMA?
TASMA Stand For Tamilnadu Spinning Mills Association
What is TASMA?
(TASMA) is an Association of Yarn Spinning Mills and other industries engaged in the Value Chains of the textile industry.
