Payment Terms

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Baman (Querist)
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13 November 2008 What is the payment terms(period)when goods are purchased for Micro & Small enterprises after which compound interest will be levied.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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13 November 2008 THirty days.

Ravikumar.G

Ravikumar.G (Expert)
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17 November 2008 Liability of buyer to make payment - period

90 days (Previous act)

45 days (Change as per MSMED Act)

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Ravikumar.G

Ravikumar.G (Expert)
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17 November 2008 Rate of interest payable on outstanding amount:

Compound interest with monthly rests, at 1½ times bank rate (Previous Act)

Compound interest with monthly rests, at 3 times bank rate (Change as per MSMED Act)