Free tool
MSME 45-day pay-by date calculator
Enter the date you accepted the goods and whether you have a written agreement. See the date you must pay by, and how many days are left.
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Runs fully in your browser. Nothing is sent anywhere. This is a guide, not legal or tax advice: check with your CA.
How the pay-by date is worked out
Section 15 of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 says a buyer must pay a micro or small enterprise supplier:
- Without a written agreement: within 15 days of the day the goods or services were accepted.
- With a written agreement: by the agreed date, but never later than 45 days from acceptance.
Example
You accept a delivery of steel worth Rs 4,80,000 on 1 October 2026. With no written agreement, you must pay by 16 October 2026. If your purchase order says 60 days, the law still counts only 45 days, so the pay-by date is 15 November 2026.
What section 43B(h) means for you
Since the financial year 2023-24, section 43B(h) of the Income-tax Act, 1961 links your tax to these dates. From 1 April 2026 the same rule is section 37(2)(g) of the Income-tax Act, 2025. If you pay a micro or small supplier later than the pay-by date, that purchase is allowed as an expense only in the year you actually pay it, even if you pay before you file your return. So a bill still unpaid on 31 March can add to that year’s taxable profit. Check with your CA which Act applies to your year.
Official sources: Ministry of MSME, MSME Samadhaan (delayed payments) and Income Tax Department.
SmartWorker shows an MSME pay-by date on purchase orders from suppliers you mark as MSME
Questions
Which date do I enter: the invoice date or the acceptance date?
Use the day the goods were delivered (or the service was done). If your invoice is dated earlier, using the invoice date is the cautious choice.
Our agreement with the supplier says 60 or 90 days. Is that allowed?
The MSMED Act caps the agreed period at 45 days from acceptance. If your agreement says more, this calculator uses 45 days, because that is the date the law and section 43B(h) look at. Check with your CA.
Does this apply to every supplier?
No. It applies to suppliers that are micro or small enterprises registered on Udyam. Medium enterprises are not covered. Retail and wholesale traders who registered on Udyam only for bank-loan benefits are outside section 15 (Ministry of MSME office memo, 28 June 2024). Ask your supplier for their Udyam certificate and keep a copy. Check with your CA for your case.
What happens if we pay after the pay-by date?
The supplier can claim interest at three times the RBI bank rate, compounded monthly, and can file a case on the MSME Samadhaan portal. For income tax, the unpaid amount is allowed as an expense only in the year you actually pay it. Use our late payment interest calculator to see the interest.
Last updated 18 October 2026. Also try the late payment interest calculator (MSMED Act).
See every pay-by date.
SmartWorker follows up customer payments and supplier deliveries, and shows the MSME pay-by date on purchase orders from MSME suppliers.