Total Outstanding tracked
₹0
Total Accrued Interest (3x)
₹0
S.43B(h) Risk / Disallowed
₹0
Invoice Ledger
| Vendor | Amount | Inv Date | Due Date | Status | Interest | Action |
|---|---|---|---|---|---|---|
| No invoices added yet. Use the inputs form to add a purchase invoice. | ||||||
MSME Section 43B(h) and Section 16 Interest Compliance
Under the **MSMED Act 2006** and the newly inserted **Section 43B(h) of the Income Tax Act 1961** (applicable from FY 2024-25 onwards):
- Payment Timeline: Outstandings to registered Micro & Small Enterprises must be paid within **15 days** (if no written agreement exists) or within the agreed period which **cannot exceed 45 days** (even if the agreement stipulates longer days).
- Income Tax Disallowance: Any invoice amount unpaid to Micro/Small enterprises within the 15/45-day window as of March 31 **will be added back to taxable income** and disallowed in that financial year, regardless of the mercantile system of accounting. It is deductible only in the year the payment is actually made.
- Section 16 Compound Interest: Delays u/s 15 attract compound interest with monthly rests at **3 times the Bank Rate** notified by the RBI (currently compounded monthly at ~20.25% p.a.). This interest is **non-deductible** as business expenditure under the Income Tax Act.
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