As per Section 15 of the MSMED Act, payments to micro and small enterprises must be made within the time specified in the written agreement, which cannot exceed 45 days. If there is no written agreement, the payments must be made within 15 days. Any payments made beyond these time limits are subject to the conditions of the newly inserted clause (h) in Section 43B, where deductions are allowed only on actual payment. Therefore Businesses that deal with micro and small enterprises will need to be more diligent in tracking and ensuring timely payments to these entities. Since deductions for delayed payments to micro and small enterprises can only be claimed upon actual payment.

The MSME Module developed as an add-on for Tally Prime helps business owners to easily manage their payments to MSME Creditors. The module provides options to mark a creditor as a MSME along with type and if clause 43B(H) is applicable to the ledger. Thereafter option is provided in Outstanding report to show only such creditors giving a clear visibility of the payment due date as per the new rules. He due dates will be shown as per the below conditions

Default Outstanding Statement

Outstanding Statement as per Section 43B (h)