Monthly service
MSME compliance
MSME compliance means paying registered micro and small suppliers within the time the law allows, at most 45 days, and reporting overdue amounts. LanceIQ captures each supplier's Udyam registration, tracks every bill against its due date and prepares the MSME-1 return.
What is included
- Udyam registration captured for each supplier
- Payment due date set on every MSME supplier bill
- A list of bills nearing or past the limit each month
- Interest on late payments worked out where it applies
- Half-yearly MSME-1 return prepared and filed
- Year end note of amounts unpaid beyond the limit
Who it is for
For manufacturers, traders and any company that buys from small suppliers. Late payments to MSME suppliers carry interest and can cost you the income tax deduction for that expense.
What you provide
- Supplier payment terms where they are agreed in writing
- Payments to suppliers from your bank account
Everything else is done for you.
When it happens
| When | What |
|---|---|
| Every bill | Due date set from the payment terms |
| Every month | Overdue and upcoming MSME payments listed |
| By 31 October | MSME-1 for April to September |
| By 30 April | MSME-1 for October to March |
Common questions
What is the 45 day rule for MSME payments?
Under the MSMED Act, a buyer must pay a registered micro or small supplier within the agreed period, which cannot exceed 45 days, or within 15 days if nothing is agreed. Late payment carries compound interest.
How do you know which suppliers are MSMEs?
Lancy reads the Udyam number from the supplier's bill or details, and we confirm it with the supplier where it is missing.
What is Form MSME-1?
MSME-1 is a half-yearly return a company files with the ROC listing amounts due to micro and small suppliers for more than 45 days.
Does late payment to an MSME affect income tax?
Yes. An expense owed to a micro or small supplier and not paid within the allowed time is not deductible in that year, which raises your tax. Tracking every bill against its due date avoids this.