Impact of delay payment to MSME vendor

CS Divesh Goyal | Last updated: 12 November 2021

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This article examines the consequences for businesses that delay payments to MSME (Micro, Small, and Medium Enterprises) vendors. It outlines the legal requirements under both the Companies Act, 2013, and the MSME Act, 2006, detailing mandatory reporting and significant financial penalties, including compound interest at three times the bank rate.

SHORT SUMMARY Many professionals have asked in many Whatsapp Groups, Social Media Platforms Impact of Delay in payment to MSME registered supplier. In this editorial author shall discuss the implication and effects of delay in payments to MSME vendor along with their reporting in Companies Act as well as MSME Act, 2006. A. Provisions of Companies Act, 2013 As per MCA Notification dated 22nd January, 2019, MCA has directed that all companies, who get supplies of goods or services fro

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About the Author

CS Divesh Goyal

Practicing Compnay Secretary

CAREER PROFILE He is a Fellow Member of the Institute of Companies Secretaries of India having intense expertise in Corporate Law for the last 8 years. He is a young and progressive Practicing Company Secretary with zeal to dig deep into the nuances of Corporate Laws. Being a researcher at heart, he has done ... Read more

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