Invoice Due Date Calculator
Credit & MSME Rule 43B(h)Calculate payment due dates based on agreed credit terms. Automatically verify compliance with the mandatory MSME 45-day payment rule under Section 43B(h).
Under Section 15 of MSMED Act, the statutory credit period cannot exceed 45 days. Even if your contract specifies Net 60 or Net 90, the legally binding due date is . Paying after this date will disallow the expense in your Income Tax return!
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Mandatory interest at 3x RBI Repo Rate (~19.5% p.a.) compounded monthly.What is Section 43B(h) of the Income Tax Act?
Effective from FY 2023-24 (AY 2024-25), Indian businesses purchasing from registered Micro and Small enterprises must clear dues within 15 days (if no written agreement) or within a maximum of 45 days (if an agreement exists).
Failure to pay by the statutory due date means the buyer cannot claim the purchase expense in that financial year, adding the entire bill value to taxable income!
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View All ToolsHow to Use This Tool
Simple steps to calculate and verify
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1
Enter Invoice & Delivery Dates Input the date of invoice issuance and goods/service delivery date.
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2
Select Credit Terms Choose Net 15, Net 30, Net 45, Net 60, or enter custom credit days.
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3
Check MSME Supplier Status Indicate whether the supplier is registered as Micro or Small under the MSMED Act.
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4
Verify Section 43B(h) Deadline View the legal due date and statutory tax disallowance warnings for delayed payments.
Pro Tips & Statutory Advice
Practical business & compliance advice
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Section 43B(h) Tax Disallowance Under Income Tax Act Section 43B(h), payments to Micro & Small vendors delayed beyond 45 days (with agreement) or 15 days (without agreement) are disallowed as business expense deductions.
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Penal Compound Interest at 3x RBI Rate Delayed payments to registered MSMEs attract mandatory compound interest with monthly rests at three times the RBI bank rate.
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Collect MSME Udyam Certificates Request Udyam registration certificates from all vendors to flag Micro & Small suppliers in your accounts payable workflow.
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Statutory 45-Day Upper Limit Even if a commercial contract specifies 90 days credit, the MSMED Act legally caps the credit window at 45 days maximum.
Frequently Asked Questions
Understanding commercial payment terms and MSME payment mandates.
What does 'Net 30' or 'Net 45' mean on an invoice?
'Net 30' means full payment is due within 30 calendar days of the invoice date. If an invoice is dated 1st March with Net 30 terms, payment must be received on or before 31st March.
Can parties contractually agree to 60 or 90 days with an MSME?
No. Section 15 of the MSMED Act explicitly states that credit terms agreed between the buyer and an MSME supplier cannot exceed 45 days under any circumstances. Any contractual clause stating 60 or 90 days is legally void.