20 September 2009
If an assessee purchases goods from a MSME and fails to make payment of the amount to the MSME before the date agreed upon, not more than 45 days, the assessee is bound to pay interest at 3 times of the bank rate,compound interest at monthly rest, to the MSME from the day next to the appointed day to the date of payment. Such interest is to be disallowed for the purpose of income computation under the head PGBP as per section 23 of the MSMED Act,2006. The said amount is to be shown in Clause 17A of Form 3CD.
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