MSME 45-Day Tracker
Track MSME supplier payments for Sec 43B(h) compliance. Calculates disallowable amounts, interest at 3× bank rate, and overdue days per invoice.
Section 43B(h) — MSME Payment Rule
Payment to registered MSME suppliers must be made within 45 days (or as per agreement, max 45 days). Unpaid amounts beyond 45 days are disallowed as a business expense in the year of disallowance and allowed only in the year of actual payment. Interest payable to MSME: 3× bank rate (currently ~19.5% p.a.).
1
MSME Suppliers
0
Compliant
1
Non-Compliant
₹2,00,000
Tax Disallowance
Total Interest Payable to MSMEs
At 3× bank rate (~19.5% p.a.) on overdue amounts
₹45,090
Supplier Invoices
Interest Accrued
₹45,090
Disallowable Amount
₹2,00,000
Sec 43B(h) applies from FY 2023-24. Disallowance is in the year payment is due (not year of accrual). Interest at 3× RBI bank rate compounded monthly per MSMED Act Sec 16. MSME registration: verify via Udyam portal. Applicable to micro and small enterprises only (not medium).
For general guidance only. Consult your CA for advice specific to your situation.