I need to understand how to compute interest on delayed payments to MSME vendor . Please provide example. Also what is rate of interest on delayed payments to MSME
31 August 2019
As per the guidelines for delayed payment of dues to the MSE borrowers If the buyer fails to make payment of the amount to the supplier, he shall be liable to pay compound interest with monthly rests to the supplier on the amount from the appointed day or, on the date agreed on, at three times of the Bank Rate notified by Reserve Bank.
As per my view the interest is to be calculated on the amount for which supply is already made or services already provided by payment is not made and due.
10 June 2020
Hi , The calculation is to be based on the prevailing bank rate on the day of interest to be calculate as mentioned above 3 times compounded at monthly rest . Regards Saurendra Rautray Rautray &co Advocate New Delhi www.rautray.com 9437008255
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