I wanted to ask about interest calculation for MSMED parties.
I am working on client and they have received MSMED confirmation from its creditors. Now the client is arguing that they wont be providing for interest for the earlier period when they didnt knw that the creditor was registered under MSMED. They are ready to provide for interest on late payment after the date on which they have received confirmation.
I am a bit confused from when interest should be provided for?
22 July 2010
Your Client is wrong, because as per law he will have to provide for and pay the interest to MSMED parties for any payment made either beyond 45 days or credit period allowed whichever is earlier.
CAclubindia
