MSME 45-Day Payment Rule: How Section 43B(h) Bites Buyers

Pay micro/small (Udyam) suppliers within 45 days with a contract, 15 days without one

Miss the window and pay after 31 March, and the expense is disallowed that year

Disallowance only defers the deduction to the year you actually pay

Traders are not covered as suppliers for 43B(h); only manufacturers and service providers

Delayed-payment interest under the MSMED Act is itself non-deductible

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