In this scenario, the doctor runs a private hospital with an associated pharmacy store, and the yearly turnover is above Rs. 2 crores. They have all transactions for the purchase of medicines on credit from an MSME (Micro, Small, and Medium Enterprises) supplier. The question is whether the credit purchase repayment provision of 15/45 days is applicable under the MSME Act and whether Section 43B provisions apply. 

Regarding the question on the applicability of the Micro, Small and Medium Enterprises Development (MSMED) Act provisions and Section 43B of the Income Tax Act, 1961, to a doctor running a private hospital and pharmacy store with an annual turnover exceeding Rs. 2 crores, here’s a comprehensive explanation based on the latest provisions:
Applicability of MSMED Act Provisions:
The MSMED Act mandates that payments for purchases from MSMEs must be made within a specified timeframe to ensure that these enterprises do not face cash flow issues. Specifically, the Act requires that payments to MSMEs should be made within 45 days of the acceptance of the goods or services. If there is no agreement specifying the payment timeline, the default period is 15 days from the date of acceptance or deemed acceptance​​.
Section 43B of the Income Tax Act, 1961:
Section 43B has been amended to include a specific clause (clause h) that directly impacts payments to MSMEs. According to the amendment, any sum payable to a micro or small enterprise, which is not paid within the timeframe as specified under the MSMED Act (45 days from acceptance), shall not be allowed as a deduction in the financial year in which the expense was incurred. Instead, the deduction will only be allowed in the financial year in which such payment is actually made​​​​.
This amendment is applicable from the Assessment Year 2024-25, corresponding to the financial year 2023-24. It aims to ensure that micro and small enterprises are paid on time, thereby improving their cash flow and financial health. The amendment applies specifically to payments to micro and small enterprises, highlighting the need for businesses to manage their payables to these enterprises diligently to avoid adverse tax implications​​​​.
Practical Implications:

1. For the Doctor’s Private Hospital and Pharmacy Store: It is crucial to manage payments to MSME suppliers within the specified 45-day period to ensure compliance with the MSMED Act. This will also ensure that the hospital can claim deductions for these payments in the correct assessment year under the Income Tax Act.
2. Tax Compliance and Planning: The amendment to Section 43B emphasizes the importance of timely payment to MSMEs, not just from a compliance perspective but also for tax planning. Businesses must ensure that their accounting and payment systems are aligned to avoid the deferral of tax deductions due to late payments.
3. Documentation and Verification: Businesses should maintain proper documentation of their transactions with MSMEs, including the verification of the MSME status of their suppliers. It’s important to ensure that payments are made within the prescribed timelines and that these transactions are accurately reflected in the business’s tax filings​​​​​​.

In summary, the doctor’s private hospital and pharmacy store must adhere to the payment timelines as stipulated under the MSMED Act to avoid adverse implications under Section 43B of the Income Tax Act. By ensuring timely payments to MSME suppliers, the hospital can not only support the financial health of its suppliers but also optimize its own tax position by ensuring that deductions for these payments are not deferred.