Tax / MSME tool
Section 43B(h) MSME disallowance forecaster
Forecast which supplier invoices are allowed, within the year-end window, out of scope, or disallowed until paid under the configured s.43B(h) rule.
Inputs
Supplier invoices
Visible formula
For each in-scope invoice: deadline = invoice / acceptance date + 15 days without a written agreement, or + up to 45 days with one. If unpaid beyond that limit at 31 March, it is added to the FY disallowed total. Tax impact = FY disallowed total × the selected configured entity rate.
Printable IF / THEN decision path
- IF the supplier is micro or small, THEN continue; IF medium or unregistered, THEN mark OUT OF SCOPE and show the exclusion note.
- IF a written agreement exists, THEN use the configured maximum 45-day window; otherwise use 15 days.
- IF paid by the selected 31 March year-end, THEN mark ALLOWED; IF unpaid but the window is still open, THEN mark ALLOWED-year-end-window.
- IF unpaid beyond the s.15 time limit at 31 March, THEN mark DISALLOWED until paid and track the eventual deduction in the actual-payment FY.
Frequently asked questions
What does Section 43B(h) do?
1. Section 43B(h) defers deduction for an amount payable to a configured micro or small enterprise when it remains unpaid beyond the MSMED Act s.15 time limit at the selected 31 March year-end. The deduction is tracked in the year of actual payment.
What is the configured payment window?
1. The configuration uses 15 days where there is no written agreement and a maximum of 45 days where a written agreement specifies the payment period.
Are medium suppliers covered?
1. No. The configured scope covers micro and small suppliers. Medium and unregistered suppliers are shown as OUT OF SCOPE, and the tool keeps the trader/Udyam exclusion nuance visible for CA confirmation.
What happens when an invoice is unpaid but still within the window on 31 March?
1. It is shown as ALLOWED-year-end-window because the configured payment window has not closed at the selected year-end. The tool does not add it to the disallowed total.
When is a disallowed amount deductible?
1. The configured consequence is deduction in the year of actual payment. The row therefore shows DISALLOWED until paid and identifies the payment FY when a payment date is entered.
Is MSMED interest included in the tax-impact total?
1. No. MSMED s.16 delayed-payment interest is a separate consequence. The configured note says that interest is permanently disallowable under s.23 MSMED read with the Income-tax Act, subject to CA review.