Know the latest date your buyer must pay you under the MSMED Act and Section 43B(h).
Under the MSMED Act, buyers must pay micro and small suppliers within 15 days, or up to 45 days if agreed in writing. Section 43B(h) ties the buyer’s tax deduction to this.
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If the buyer pays after this date, Section 43B(h) allows their deduction only in the year of actual payment. Delayed payments also attract compound interest at three times the RBI bank rate with monthly rests under Section 16 of the MSMED Act.
Applies to micro and small enterprises registered on Udyam. Not legal advice.
Results are indicative and not a sanction or legal advice. For a lender-ready assessment, book a consultation.
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