INDIA · MSE PAYMENT EVIDENCE

Keep supplier status, acceptance and payment timing visible.

India’s MSMED framework addresses delayed payment to eligible micro and small enterprise suppliers. A buyer needs reliable supplier classification, acceptance dates, agreed terms, invoice evidence and payment status to support timely review.

Control questions

Record supplier-declared MSE status and supporting evidence
Capture acceptance or deemed-acceptance dates
Keep agreed payment terms visible
Flag approaching and exceeded due dates
Route exceptions to finance and professional review

Evidence to retain

Supplier declaration and Udyam evidence
Order and agreed terms
Receipt or service-acceptance record
Invoice and due-date calculation inputs
Payment status and exception history

Claim boundary: RAQOZ supports record-keeping and operational alerts. Eligibility, due-date, interest and Income-tax Act section 43B(h) conclusions require current legal and tax review; the system does not provide those conclusions.

Version and applicability

These labels distinguish law, certification and accreditation context. They do not determine whether a requirement applies to a specific organisation or transaction.

Act 27 of 2006, current text subject to official verificationPUBLISHED CURRENT

Transactions within the Act's scope involving eligible micro or small enterprise suppliers; eligibility requires factual and professional review.

Applicability class: direct law · Last verified: 2026-09-01 · Next review: 2026-12-01

Primary sources

Requirements and guidance change. Review the current source and record the date of professional review before relying on a control interpretation.

India Code — MSMED Act, 2006 Ministry of MSME — delayed-payment guidance Income Tax Department — Form 3CD webinar material

Use the 45-day tracker Review Section 43B(h) evidence Check procurement evidence Open the Controls Kit