Understanding Clause (h) of Section 43B

[SURYAKANT MITHBAVKAR]

'Meaning - section 15 - Liability of buyer to make payment

Business enterprises are required to pay MSMEs within 45 days, as per section 15 of the MSMED Act, 2006, depending on the presence of a written agreement.

In the absence of a written agreement, payment should be made within 15 days.

In case there is a written agreement, payment shall be made as per the agreed-upon timeline, not exceeding 45 days.'

Kindly refer to the above details. Our agreed payment terms with the suppliers is for 90 days.

Any further notification is awaited for credit period beyond 45 days.

AI Summary

Clause (h) of Section 43B: Payment Terms for MSMEs Under Section 15 of MSMED Act, 2006 Explained. A discussion on Clause (h) of Section 43B addresses the payment obligations of business enterprises to MSMEs under Section 15 of the MSMED Act, 2006. Payments must be made within 45 days if a written agreement exists, or within 15 days if there is none. The initiator mentions an agreement with suppliers for a 90-day payment term and awaits further notifications regarding credit periods beyond 45 days. The sole reply requests clarification of the query.