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.

[Padmanathan KV]

Pls specify the query

AI Summary

MSMED Act payment timelines: agreed supplier credit beyond the statutory period may be ineffective absent governing notification. Section 15 of the Micro, Small and Medium Enterprises Development Act prescribes buyer payment obligations: payments must follow an agreed written schedule provided it does not exceed the statutory maximum, while a shorter default timeline applies when no written agreement exists. Contractual credit periods extending beyond the statutory limit require an enabling notification; absent such notification, parties should not rely on longer agreed credit terms.