MSME 45-day payment calculator

Check a payment

Filled in with an example: ₹2,00,000 accepted on 25 September 2026, no written agreement, paid on 30 November 2026.

Amount payable to the supplierrupeesThe bill amount you owe a micro or small manufacturer or service provider. Date of acceptanceThe day the goods or services were accepted, usually the goods receipt. Not the invoice date. With no written objection within 15 days, acceptance is deemed on the day of delivery. Date paid, or the date you plan to payInterest runs to this date. RBI bank ratepercent a year5.75% since the RBI's policy of 7 October 2026, as rbi.org.in showed it on 14 October 2026. It was 5.50% before that. Use the rate in force over your period.

Is there a written agreement on payment terms?

No: 15 days from acceptance Yes: the agreed days, never more than 45

Result51 days late, ₹4,792.59 interest

Last day to pay was 10 October 2026. Paid 51 days late. Interest ₹4,792.59. Late, so interest is owed, but paid before the year ended on 31 March 2027, so Section 37(2)(g) of the Income-tax Act 2025 does not move the deduction.

How the due date and interest are worked out, line by line
Line	Working	Value
Accepted	the clock starts here, not at the invoice date	25 September 2026
Last day to pay	no written agreement: 15 days from acceptance	10 October 2026
Paid	51 days after the last day	30 November 2026
Interest rate	3 × the RBI bank rate of 5.75%, compounded monthly	17.25% a year
Interest owed	1 whole month compounded, then 20 days simple	₹4,792.59
Principal plus interest	₹2,00,000.00 + ₹4,792.59	₹2,04,792.59

Late, so interest is owed, but paid before the year ended on 31 March 2027, so Section 37(2)(g) of the Income-tax Act 2025 does not move the deduction. The interest itself is never deductible (Section 23 of the MSMED Act).

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About this calculator

Enter the acceptance date, whether there is a written agreement, and when you paid or will pay. You get the last day to pay under Section 15 of the MSMED Act, days late, interest at three times the RBI bank rate, and whether the expense moves to a later year under Section 43B(h).

A calculator, not legal or tax advice: whether a supplier is covered, and which date is the acceptance date, are questions for your CA. Nothing you type leaves this page. RBI bank rate 5.75 percent from 7 October 2026. Last reviewed 14 October 2026.

How the figures are worked

The rule behind each line.

The last day. Section 15 of the MSMED Act counts from acceptance. No written agreement: payment is due before the appointed day, the day after fifteen days from acceptance, so day 15 is the last day. Written agreement: the agreed day, but never more than 45 days from acceptance.

An agreement for more than 45 days. The longer clause is void. The common reading, used in Form 3CD (the tax audit report), caps it at 45 days; the calculator uses that. The stricter reading treats it as no agreement and falls back to 15 days, and the result shows that figure too. Our guide to the rule explains both.

Interest. Section 16: the buyer pays compound interest with monthly rests, at three times the RBI-notified bank rate, from the day after the last day until payment. Each whole calendar month compounds at a twelfth of the yearly rate. Leftover days earn simple interest at the yearly rate over 365 days. One bank rate is used for the whole period; if it changed while the bill was overdue, ask your CA how to split it.

The year-end check. Section 43B(h) of the Income-tax Act 1961, now Section 37(2)(g) of the Income-tax Act 2025 from tax year 2026-27, allows a payment made after the Section 15 limit only in the year it is paid. The calculator assumes the purchase is booked in the financial year of acceptance. Late but paid before 31 March: the deduction stays. Late and paid after 31 March: it moves to the year of payment. Under Section 23 of the MSMED Act, the interest itself is never deductible.

What this calculator is not

Four things it leaves to you and your CA.

It does not know your supplier. The rule covers micro and small manufacturers and service providers on Udyam. Not medium enterprises, and not traders, who are on Udyam only for priority-sector lending. Check the category and activity on the certificate.

It does not decide the acceptance date. That comes from your goods receipt or service acceptance. A written objection within 15 days changes it.

It is not the disallowance. Your CA works that out for Form 3CD, across every supplier and bill.

It sends nothing you type. Nothing is sent, stored or saved on this device; reloading clears it. One count is sent the first time a number you changed gives a result. It names the calculator, not your figures. See the privacy policy.

See the overdue list before March.

Ordence tracks the MSME payment deadline on bills from suppliers marked micro or small, next to bill-wise ageing. A bill close to its limit shows up while there is still time to pay.

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