sachinnagpal.in · Cheat sheet
P2P controls and tax checks
Vendor master, three-way match, TDS under the 2025 Act, MSME 45 days and GST on toll. · As of 25 October 2026
The P2P chain
| Step | Key control |
|---|---|
| Vendor onboarding | PAN, GSTIN and bank checks; Udyam (MSME) status; related-party flag |
| PO / work order | Approval matrix; link to O&M budget |
| Receipt | Measurement or engineer's certificate |
| Invoice | Three-way match: PO, GRN, invoice with tolerances |
| Tax | TDS rate and section; GST credit eligibility |
| Payment | Ageing, MSME due dates, escrow waterfall, maker-checker |
| Vendor reconciliation | Statement match at least quarterly |
MSME
- Pay micro and small suppliers within the agreed period, at most 45 days, or 15 days if nothing is agreed (MSMED Act, section 15)
- Late payment: compound interest at 3 × the RBI Bank Rate, monthly rests (section 16)
- Unpaid beyond the limit can be disallowed for income tax until paid
TDS
- From 1 April 2026 the Income-tax Act, 2025 applies; rates are in the section 393 tables
- Keep a mapping from old sections (194C, 194J, 194-I, 194A…) to the new references
- Deposit on time and match challans to the ledger and the return
GST on tolls
- Access to a road or bridge on payment of toll is exempt
- A toll-only SPV therefore cannot claim most input tax credit
- HAM concessionaires supply taxable services, so their credit position differs
Red flags
Duplicate PAN or bank account • invoice without a PO • same person creates and approves a vendor • round-sum invoices • payments just below an approval limit
Free templates
Vendor master (Q), three-way match (R), TDS tracker (S), AP ageing with MSME (T), vendor reconciliation (U): sachinnagpal.in/templates