Understanding Clause (h) of Section 43B, Income Tax

[SURYAKANT MITHBAVKAR]

'Meaning - section 15 - Liability of buyer to make payment

Business enterprises are required to pay MSMEs within 45 days, as per section 15 of the MSMED Act, 2006, depending on the presence of a written agreement.

In the absence of a written agreement, payment should be made within 15 days.

In case there is a written agreement, payment shall be made as per the agreed-upon timeline, not exceeding 45 days.'

Kindly refer to the above details. Our agreed payment terms with the suppliers is for 90 days.

Any further notification is awaited for credit period beyond 45 days.

Posts / Replies

[Padmanathan Kollengode]

Pls specify the query