MSME SECTION 43B(h)

Income Tax under this clause has allowed the credit limit as per Section 15 of the MSMED Act, 2006 which states that maximum time limit of the credit is 45 days in case it was agreed between both parties in writing otherwise it is 15 days in the absence of written agreement. In case of default of the payment within 15days/45days, buyer is liable to pay compound interest at three (3) times of the bank rates notified by RBI.

Medium enterprises	43B(h) not applicable
Traders	--do—
Buyer filing ITR u/s 43ad, 43ada, 43ae	--do—
Not registered vender under MSMED Act, 2006	--do—
Invoices payble before 31/03/2023	--do—

MEDIUM  enterprises

Turnover  <=250 Crore

Investment in Plant & Machinery  <=50 Crore