CBDT signs MoU with MSME ministry to share data
Parul July 23, 2020
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According to news reports, the central board of direct taxes (CBDT) has signed a memorandum of understanding (MOU) with the ministry of micro, small and medium enterprises for sharing data on income tax returns filed by micro and small enterprises.
This is likely to be used to ascertain the cash flow of MSMEs and ensure that they do not misuse the concessions given by the government. The CBDT data will enable the MSME ministry to check and classify enterprises in the MSME category as per the criteria notified by the government.
Reports claim that both the organisations will appoint nodal officers and alternate nodal officers to facilitate the process of data exchange. The MoU marks the beginning of a new era of cooperation and synergy between the CBDT and the ministry of MSME.
It is said that the authorities have tightened the screws on companies that continue to enjoy MSME status despite having surpassed the earlier parameter based on investment limit in plant and machinery.
The new era of compliance and enforcement initiated for the MSME sector will effectively ensure that the benefits and sops go to those companies that are within the ambit of MSMEs and not those that pretend to be so.