Budget 2020: Easier credit payment and compliance spell relief for MSMEs

Finance Minister Nirmala Sitharaman announced a bunch of measures to give further impetus to micro, small and medium enterprises (MSMEs) that are struggling to meet stringent compliance norms and secure payments. Lowering the threshold for availing of invoice credit, extending easier compliance norms to majority of the micro and small firms, and waiving dividend 

distribution tax (DDT) will help the entities from the next fiscal year.

To reduce the crunch in working capital for MSMEs, the minister proposed to amend the Factoring Regulation Act, 2011. The new rules will allow non-banking financial companies (NBFCs) to offer invoice credits to MSMEs against their