Regarding MSME.
This query is : Resolved
02 February 2024
Trader are eligible in section 43B(h).
02 February 2024
Sec 43B(h) eligible for Manufacturer and Services sector.
17 August 2025
A few updates you should consider adding to your discussion:
1. Half-Yearly Disclosure Required
From April 1, 2025, any company defaulting on payments beyond 45 days must report via MSME-1 form to MCA—covering amounts paid on time, delayed, and pending
StoxN Tax
csdiveshgoyal.com
.
2. MSME Classification Revised
Starting this year, MSME definitions were updated: micro (≤₹10 cr), small (≤₹100 cr), and medium (≤₹500 cr) turnover/investment thresholds now apply
Figment
.
3. Tax Audit Must Reflect MSME Payments
From AY 2025–26, audit Form 3CD requires details of disallowed interest (Sec 23), dues under Sec 15, and breakdown under Sec 43B(h)
Figment
.
4. Supplier Access to Free Dispute Resolution
MSMEs have recourse to statutory facilitation councils for conciliation/arbitration, unaffected by arbitration agreements. Appeals require a 75% pre-deposit
Chambers and Partners
.
5. Transparency via Public Portals
Suppliers can register defaults via MSME Samadhaan or platforms like NoDefaulters, creating public accountability
Chambers and Partners
.
6. Operational Concerns from Industry
Certain sectors report that a rigid 45-day compliance rule may stress their cash flows—some are pushing for sector-specific flexibility
The Economic Times
.
Summary
MSME compliance is evolving quickly, spanning income tax, company law, and public disclosure frameworks. Staying updated and proactively adapting AP systems, vendor tracking, and audit controls will help avoid penalties and maintain healthy MSME relationships.
1. Half-Yearly Disclosure Required
From April 1, 2025, any company defaulting on payments beyond 45 days must report via MSME-1 form to MCA—covering amounts paid on time, delayed, and pending
StoxN Tax
csdiveshgoyal.com
.
2. MSME Classification Revised
Starting this year, MSME definitions were updated: micro (≤₹10 cr), small (≤₹100 cr), and medium (≤₹500 cr) turnover/investment thresholds now apply
Figment
.
3. Tax Audit Must Reflect MSME Payments
From AY 2025–26, audit Form 3CD requires details of disallowed interest (Sec 23), dues under Sec 15, and breakdown under Sec 43B(h)
Figment
.
4. Supplier Access to Free Dispute Resolution
MSMEs have recourse to statutory facilitation councils for conciliation/arbitration, unaffected by arbitration agreements. Appeals require a 75% pre-deposit
Chambers and Partners
.
5. Transparency via Public Portals
Suppliers can register defaults via MSME Samadhaan or platforms like NoDefaulters, creating public accountability
Chambers and Partners
.
6. Operational Concerns from Industry
Certain sectors report that a rigid 45-day compliance rule may stress their cash flows—some are pushing for sector-specific flexibility
The Economic Times
.
Summary
MSME compliance is evolving quickly, spanning income tax, company law, and public disclosure frameworks. Staying updated and proactively adapting AP systems, vendor tracking, and audit controls will help avoid penalties and maintain healthy MSME relationships.
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