Which suppliers are covered?

Micro and small enterprises. Medium enterprises are not covered, and traders are generally outside section 15 of the MSMED Act; you can choose to include them.

How is the time limit worked out?

15 days where there is no written agreement, otherwise the agreed period capped at 45 days, counted from the invoice or acceptance date you provide.

Is a bill paid late but within the same year disallowed?

No. The expense is allowed in the year of payment, which is the same year. Interest for the delay is still payable and is not deductible.

toolsmsme-43bhfree · runs in your browser

MSME 43B(h) vendor checker

Creditor bills → 15/45-day breaches → disallowance and MSMED interest working paper.

Upload creditor bills with each vendor's MSME category. Payments to micro and small enterprises that miss the 15-day limit, or the agreed period up to 45 days, are deductible only in the year of payment. .

Year end
Unpaid bills checked as on
RBI bank rate %
Treat traders as covered

Interest is charged at three times the bank rate, compounded monthly. Check the current bank rate on rbi.org.in. The time limit legally runs from the day of acceptance; the invoice date is used unless you supply an acceptance date.

Creditor bills

Vendor, MSME category, invoice date, amount. Payment date blank means unpaid.

Drop Excel or CSV here, or click

IN SHORT

The MSME 43B(h) checker takes a list of creditor bills and works out which payments to micro and small enterprises missed the 15-day or agreed 45-day limit, the resulting disallowance under section 43B(h), and the interest under section 16 of the MSMED Act. It is free, runs in the browser, and produces an Excel working paper for the tax audit.

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STEP BY STEP

How it works

List creditor bills in Excel with the vendor's MSME category, invoice date, amount and payment date. A template is provided.
Set the year end and the current RBI bank rate.
See the disallowance under section 43B(h), the interest under section 16 of the MSMED Act, and what can still be saved by paying before the due date.

GOOD TO KNOW

Common questions

Which suppliers are covered?: Micro and small enterprises. Medium enterprises are not covered, and traders are generally outside section 15 of the MSMED Act; you can choose to include them.
How is the time limit worked out?: 15 days where there is no written agreement, otherwise the agreed period capped at 45 days, counted from the invoice or acceptance date you provide.
Is a bill paid late but within the same year disallowed?: No. The expense is allowed in the year of payment, which is the same year. Interest for the delay is still payable and is not deductible.