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ARUKZ ERP works out when each bill from a micro, small or medium supplier must be paid under section 15 of the MSMED Act, 2006, the interest under section 16 if it is paid late, and which unpaid amounts the Income-tax Act, 2025 lets you deduct only when paid. It gives you an MSME payables report and a Half-yearly overdue list for your CA. It does not prepare MSME Form I itself.
The MSME payments module is switched on by ARUKZ staff when you need it. It sits under Accounting → MSME payables. See Modules.

Set it up

1

Mark your MSME suppliers

Under Suppliers, add each supplier’s Enterprise type (micro, small or medium), Udyam number, and the Payment days agreed in writing, if any.
2

Enter the RBI bank rate

Under Bank rates, enter the bank rate notified by RBI and the date it is In force from. Nothing is seeded; add a row each time RBI changes it.
3

Record when goods were accepted

On the MSME payables report, use Set date on a bill to record when the goods were accepted. The due date runs from that day.

How the due date and interest are worked out

The Act does not settle two details, so ARUKZ ERP made a choice your CA should confirm: each monthly rest uses the bank rate in force on its first day, and a part month at the end is charged by days over 365. Medium enterprises are listed with their due date but no interest figure, because whether these sections reach them is for your CA to say.

The reports

MSME payables

Bills from MSME suppliers: what is still owed on the report date, when it fell due and the interest on it. A bill paid late stays on the report for the financial year it was paid in.

Half-yearly overdue list

Amounts overdue to micro and small enterprises at the end of April to September or October to March. A working list, not MSME Form I.

What it does not do yet

  • It does not prepare or file MSME Form I. The half-yearly list is a working list for your CA.
  • It does not read a supplier’s Udyam status from the government portal. You enter it.
  • It does not post the interest to the books.

Purchases

Purchase orders, goods receipts and vendor bills.

TDS

Deductions on vendor bills, challans and Form 140 data.
Last modified on November 12, 2026