MSMED Act 2006 s.15

MSMED Act 2006 s.15 — the law in short

What the courts have decided on section MSMED Act 2006 s.15, in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.

• CBDT Circular 1/2024 CBDT Circulars & InstructionsHelps departmentSuperseded by amendment
  I paid my MSME supplier late but before filing my return. Is the expense disallowed this year?
  Yes, it is deferred. For a sum payable to a micro or small enterprise beyond the time limit in s.15 of the MSMED Act, the proviso to s.43B is expressly switched off, so paying before the return due date does not rescue the deduction. You get it only in the year you actually pay.
• MSME Office Memorandum 1/4(1)/2021 CBDT Circulars & InstructionsCuts both waysValidity unconfirmed
  My supplier is a trader with Udyam registration. Does the 43B(h) disallowance apply to him?
  No. The Ministry of MSME's memorandum confines the benefit of Udyam registration for wholesale and retail traders to Priority Sector Lending; the delayed-payment provisions of the MSMED Act, including s.15, are excluded. Since clause (h) works by reference to the s.15 time limit, purchases from traders fall outside it.

Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.