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Section 43B(h) · MSMED Act · MSME Form 1

The deduction slips on day 46. Know which vendors count.

Payments to micro and small enterprises made after the MSMED deadline are deductible only in the year they are actually paid. FortyFive classifies your vendors, runs the 45-day clock on every bill, and hands you the payment run that keeps the deduction.

Start free for 14 daysSee the 45-day clock
  • 14-day trial
  • No card required
  • Cancel any time

Unclassified vendors first, then the bills whose clock runs out this week. Sample data, for illustration.

45 days

the outer limit under section 15 of the MSMED Act, whatever the purchase order says

Built for practices that file for

  • Manufacturing SMEs
  • Engineering firms
  • FMCG distributors
  • Textile exporters
  • Contract packers
  • Auto component makers

How it works

Import, classify, pay before day 45

Bring one purchase ledger export. The unclassified vendor queue is the only list you have to work, and it shrinks every time a supplier answers.

  1. 01

    Import the purchase ledger

    Tally and Zoho exports are read as they come — merged headers, dd-mm-yyyy dates, Excel serials and all. Vendors are created on first sight with category unknown and land straight in the classification queue.

  2. 02

    Ask the vendor once

    Bulk-request declarations and each supplier gets a single-use link: Udyam number, enterprise category, primary activity, agreed credit days, and the certificate PDF. Their answer is the evidence in your file.

  3. 03

    Pay the right bills first

    The weekly pay-run lists every bill whose deadline falls in the next seven days, biggest exposure first, with the interest that starts accruing the day after.

Features

The statute, implemented

Deadlines, interest and reporting are pure, versioned functions with the arithmetic written down — so a disputed figure can be reproduced rather than argued about.

  • The 45-day clock, per bill

    Agreed credit days capped at 45, 15 days when there is no written agreement, counted from the acceptance date when an objection was raised. Every bill carries the date the deduction is lost.

  • Vendor classification with evidence

    Micro, small, medium or not-MSME, plus manufacturer, service or trader — because a registered trader is outside 43B(h) but still inside Form 1. The declaration and the certificate stay attached to the vendor.

  • Interest under MSMED section 16

    Three times the RBI bank rate, compounded with monthly rests, using the rate in force on each day. Payments knock out accrued interest before principal, and the rate table used is printed with the workings.

  • FY exposure and the curable list

    What is disallowed as at 31 March, and separately what is still curable — bills whose deadline falls after year end and stay deductible if you simply pay them on time.

  • MSME Form 1 in MCA column order

    Half-year buckets at 30 September and 31 March, dues outstanding beyond 45 days, reason for delay per line, exported in the order the MCA form expects.

  • Imports that survive real exports

    Header synonyms for Tally and Zoho, dd-mm-yyyy and Excel serial dates, paise as integers, GSTIN to PAN derivation, and FIFO allocation flagged when the bill number is missing.

  • Multi-entity from the first migration

    A practice holds a hundred buyer companies in one workspace, each with its own vendors, bills, fiscal year start and Form 1 calendar. Row level security keeps every client's books apart.

  • Alerts on the statutory calendar

    A Monday pay-run digest, the Form 1 window on 1 April and 1 October, and the March exposure warnings on the 1st and the 20th — all in Indian Standard Time.

  • Billing in your customer's currency

    Rupee pricing through Razorpay, dollar pricing through Stripe, one subscriptions table, and entitlements enforced server side.

Interactive

Watch the deduction go

Move the slider. Green to day 37, amber from day 38, red from day 45 — with the interest and the deduction at risk counting up. Switch the vendor to medium and the exposure disappears.

1 Apr 2026 + 30 days = 1 May 2026

Amber at 38 days, red at 45 — the outer limit section 15 of the MSMED Act allows for an agreed credit period.

What is Beta Castings Pvt Ltd?

Small enterprise — section 43B(h) applies and dues over 45 days are reported in MSME Form 1.

Supplier

Beta Castings Pvt Ltd

15 days to pay

Appointed day 16 May 2026 · 45 days allowed

Bill INV-0042 · ₹4,50,000

Interest accrued
₹0

18.75% a year, compounded monthly under section 16

Deduction at risk
₹0

Still deductible this year if you pay by the appointed day

One sample bill, computed by the same functions the dashboard uses. Nothing is uploaded and no account is required.

Pricing

Priced per workspace, not per return

Fourteen days free, no card. Annual billing costs ten months. A practice's entities all sit in one workspace.

Save 17%

  • Starter

    One company, one set of books, the whole 43B(h) picture.

    ₹999/ month

    Billed monthly, cancel any time

    Start 14-day trial
    • 1 entity
    • 200 vendors
    • 2 seats
    • Vendor declaration links and reminders
    • Weekly pay-run and 43B(h) exposure
    • MSME Form 1 export in MCA column order
  • Recommended

    Practice

    For a CA firm running the March close for a book of clients.

    ₹2,999/ month

    Billed monthly, cancel any time

    Start 14-day trial
    • 15 entities
    • 3,000 vendors
    • 10 seats
    • Tally and Zoho ledger imports
    • Bulk declaration requests with evidence trail
    • Copy a declaration across entities
    • Priority support

  • Firm

    For a practice that files for a hundred companies every half-year.

    ₹7,999/ month

    Billed monthly, cancel any time

    Start 14-day trial
    • 100 entities
    • Unlimited vendors
    • Unlimited seats
    • Half-yearly Form 1 windows across the whole book
    • Interest workings exported with the rate table used
    • Onboarding call

Workspaces in India are billed in INR through Razorpay; everywhere else in USD through Stripe. Your workspace country decides which checkout opens. Prices exclude applicable taxes.

FAQ

Before you start the trial

If yours is not here, write to us and a human replies.

Find the micro and small vendors before 31 March does

Fourteen days, no card. Import one purchase ledger and see the exposure, the curable list and the Form 1 bucket for yourself.

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