MSME payment rule
The rule that a buyer must pay a micro or small enterprise supplier by the agreed date, which can never be more than 45 days from acceptance, or within 15 days where there is no written agreement.
It comes from section 15 of the MSMED Act, 2006. Under the Income-tax Act, 2025, section 37(2)(g), an amount paid to such a supplier beyond that time limit is deductible only when actually paid. How it applies to a particular business is a question for a CA. See the MSME requirements.
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