Compliance Reference

Quick Compliance Reference.

Quick Compliance Reference

Provision	What it requires
Section 15, MSMED Act 2006	Buyers must pay Micro/Small suppliers within 45 days (15 days with no written agreement).
Section 16, MSMED Act 2006	Amounts unpaid beyond the due date accrue compound interest, generally 3× the RBI-notified bank rate.
Section 43B(h), Income Tax Act	Unpaid amounts beyond the Section 15 limit are disallowed as a tax deduction until actually paid.
MSME Form I / MSME-I Return	Half-yearly return to the MCA listing amounts due and reasons for delay.

This is a plain-language summary, not legal advice. Confirm applicability and current thresholds with your company secretary or tax advisor.

Quick Compliance Reference.

Provision	What it requires
Section 15, MSMED Act 2006	Buyers must pay Micro/Small suppliers within 45 days (15 days with no written agreement).
Section 16, MSMED Act 2006	Amounts unpaid beyond the due date accrue compound interest, generally 3× the RBI-notified bank rate.
Section 43B(h), Income Tax Act	Unpaid amounts beyond the Section 15 limit are disallowed as a tax deduction until actually paid.
MSME Form I / MSME-I Return	Half-yearly return to the MCA listing amounts due and reasons for delay.

This is a plain-language summary, not legal advice. Confirm applicability and current thresholds with your company secretary or tax advisor.