FAQs on Timely Payments to MSME – An Interplay between Sec. 43B(h) of the Income-tax Act & MSMED Act

FAQs on Timely Payments to MSME – An Interplay between Sec. 43B(h) of the Income-tax Act & MSMED Act is a focused and practice-oriented guide addressing one of the most significant compliance changes impacting businesses dealing with MSME vendors. Introduced through recent amendments, Section 43B(h) disallows deductions for payments to MSMEs unless such payments are made within the timelines prescribed under the MSMED Act. This book adopts a structured FAQ format to clarify critical issues such as applicability, payment timelines, consequences of non-compliance, interest implications, reporting requirements, and practical challenges faced by businesses. It explains how the Income-tax Act and MSMED Act operate together, highlighting the obligations of buyers and the risks of tax disallowance due to delayed payments. With clear explanations, statutory references, and practical insights, the book serves as an essential compliance manual for corporates, tax professionals, and finance teams. It helps readers align their vendor payment systems, accounting practices, and tax planning strategies with the law, thereby minimizing litigation exposure and financial risk.