MSME Vendor Payment Due Date Tracker (45 Day Rule)
Since the Section 43B(h) rule applies, payments to micro and small suppliers that cross the legal period can cost you a tax deduction. This tracker puts every micro and small vendor invoice next to its agreed credit days and shows what is already overdue.
| Vendor | Udyam category | Invoice no | Acceptance date | Invoice amount | Agreed credit days (days) | Days since acceptance (days) | Days beyond limit | Overdue amount | |
|---|---|---|---|---|---|---|---|---|---|
15 | Rs 630,000 | ||||||||
0 | Rs 0 | ||||||||
30 | Rs 152,000 | ||||||||
0 | Rs 0 |
The sheet caps the agreed period at 45 days for every row, so for a medium vendor treat the overdue column as informational only. In the sample, the Vijay Tool Crib row shows that an agreed 60 days is treated as 45. Not legal or tax advice.
Get MSME due dates inside your ERP
Optional: a review of vendor master and payable data to flag MSME dues without a separate sheet.
Optional. The tool and every export work without this. No spam.
How to use the tracker
List open payables to vendors with their Udyam category. Enter acceptance date, invoice amount, agreed credit days and days since acceptance. The sheet limits the usable period to 45 days and shows the days beyond limit and the overdue amount. Sort by the biggest overdue amount, plan payments, and export the file for your auditor. Update days since acceptance at each review date, such as month end or March 31.
- Collect Udyam certificates and record category on the vendor master
- Count from the day of acceptance or deemed acceptance
- Without a written agreement, the limit is 15 days
What the rules say
Section 15 of the MSMED Act 2006 requires a buyer to pay a micro or small supplier by the agreed date, not beyond 45 days from acceptance, and within 15 days where nothing is agreed. Section 16 provides compound interest with monthly rests at three times the bank rate notified by the Reserve Bank of India on overdue amounts. Under Section 43B(h) of the Income-tax Act, amounts owed beyond those limits are deductible only in the year actually paid. Buyers also report outstanding dues in the half-yearly MSME Form 1.
Common mistakes
Teams count from invoice date rather than acceptance date, treat medium vendors as covered, or forget that a written agreement for more than 45 days is not honoured for this purpose. Another error is missing vendors whose Udyam status changed during the year. Reconcile the tracker with vendor ageing in your accounting package and review it a month before the financial year closes, when there is still time to pay.
Frequently Asked Questions
Does this apply to medium suppliers?
No. The 45 day rule and Section 43B(h) apply to micro and small enterprises registered under the MSMED Act, not to medium ones. Keep the category column accurate and ignore medium rows for compliance.
What is the deemed acceptance date?
If the buyer neither accepts nor objects in writing within 15 days of delivery, the goods are treated as accepted on the day of delivery. Confirm the exact wording in the Act with your adviser.
How is interest calculated?
Section 16 provides compound interest with monthly rests at three times the bank rate notified by the RBI. This worksheet does not compute it, so use it to identify the amounts first.
Can I filter by vendor?
Use the Excel export and apply filters there. In the browser you can edit rows, add vendors and read the totals. Keep one master list and refresh the elapsed days at each review.
If vendor categories and due dates live outside your ERP, we can explore putting the MSME flag and due date on every payable automatically.
Related Tools
TDS Deduction Tracker Worksheet for Vendor Payments
Record vendor bills, apply a TDS section and rate, and see tax deducted and net payable per line and in total.
Country & TaxPurchase Order Format Template for Indian Manufacturers
A purchase order format with GSTIN, HSN, delivery schedule, payment terms and an MSME payment clause, ready to export.
Country & TaxGSTR-2B ITC Reconciliation Worksheet (Books vs Portal)
A line-by-line reconciliation sheet that compares ITC booked in your accounts with ITC shown in GSTR-2B and shows the difference.
Country & TaxGST Tax Invoice Format Template for Indian Manufacturers
A fill-in GST tax invoice with the mandatory fields for a manufacturer: GSTIN, HSN, place of supply, taxable value and CGST/SGST/IGST lines.
More Country & Tax tools
See all- Delivery Challan Format Template for Goods Movement in India
- Job Work Challan Register and ITC-04 Worksheet
- GST Inclusive and Exclusive Price Calculator
- GST Bill of Supply Format Template India
- GST Export Invoice Under LUT Template India
- GST Reverse Charge Self Invoice and Payment Voucher Template
- GST Show Cause Notice Reply Template (DRC-06 Style)
- GST Rule 37 180-Day ITC Reversal and Interest Worksheet
- GST E-Invoice IRN Tracking Log Worksheet