Jammu, May 16: The Micro & Small Enterprises Facilitation Council has warned that the delay in payments for the supplies received from the Micro Small and Medium Enterprises (MSMEs) will invite heavy penalty against the defaulting buyers under the MSMED Act.
A circular issued by Chairperson, Micro & Small Enterprises Facilitation Council, Anoo Malhotra, stated that the Micro Small and Medium Enterprises Development Act 2006 provides for specific provisions to deal with cases of delayed payments to Micro & Small Enterprises in respect of goods supplied or services rendered by them and buyer shall make payment to the supplier for the supply of goods & services within 45 days from the day of acceptance of goods/services, otherwise buyer is liable to pay compound interest with monthly rests to the supplier for such delayed period, beyond 45 days, on the amount payable at three times the bank rate notified by Reserve Bank of India as provided under Section 16 of the MSMED Act, 2006.
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