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Interests for MSME Suppliers

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Mohanraj J

1238 Points Posted on 12 May 2020

Dear Friends,
We need to show Interest Payable for Delayed in payment to MSME Suppliers in the Annual Financial Statements?. It is mandatory or not?

Replies (4)

Quick Summary

This discussion clarifies the mandatory requirement to show interest payable for delayed payments to MSME suppliers in annual financial statements. Even if vendors don't demand interest and the company isn't willing to pay, the statutory liability remains. The interest must be calculated and paid along with the principal amount.

CA Garima

Assistant Manager

118 Points Posted on 12 May 2020

Yes, it is mandatory to show interest .Since it is a statutory liablity on business to pay interest for delayed payment to MSME irrespective of contract with party.

Mohanraj J

1238 Points Posted on 12 May 2020

But our Vendors are not demands any interest, as well our company is not willing to pay Interest. In this case how do we show in the Financial Statement?