Payment security to MSME as per MSME provision
Section 15 of the MSME Act states that if the supplier supplies products or offers any services to any purchaser, the consumer shall make the payment on or before the date stated in the agreement and if there is no agreement before the date specified.
The MSMED Act of 2006 gives the recipient of any goods or services a 45-day credit term to reimburse the MSME provider. It is included to safeguard the interests business of MSME.
The proviso to this Section states that the credit period provided by the seller shall not exceed 45 days from the date of acceptance or from the date of acceptance deemed.
- “Approved date” means the day immediately following the expiry of the 15-day period from the date of acceptance or the date of considered acceptance by the purchaser of any products or services from the supplier;
- ‘Day of acceptance’ means,-
(a) the day on which goods are actually delivered or services are rendered; or
(b) where the customer poses some complaint in writing concerning the acceptance of products or services within 15 days of the day on which products are delivered or services are rendered, the day on which the supplier eliminates such complaint
- ‘Day of deemed acceptance’ means that the buyer does not object in writing to acceptance of products or services within 15 days of the day on which the products are delivered or services are rendered, the day on which the goods are actually delivered or services are rendered;
Thus you are not entitled to pay interest under the MSME Act in respect of delayed payment.
MSME Provisions in India
- Availability of collateral free loans.
- Govt support in the form of incentives & subsidies.
- Lower rate of interest.
- Priority in case of registration & compliance approvals by Central & State Govt.
What are the class of Person or Entities Covered under MSME?
Types of person covered under MSME are:
- Hindu Undivided Family
- Co-operative Society
- Partnership Firm
- Association of Persons
Below documents must be completed in order to be registered as an MSME under the prescribed Act:
- Pan of Company/Firm Pan Card (in case of Company/Firm), Pan Card of the Applicant (if a proprietor);\
- Aadhar Card of the Applicant.
- AOA & MOA
- Bank Account Details
- Office and Plant Locations address and proof
- Bills of the equipment employed
- Non-compliance is punishable under Section 405(4) of the Companies Act, 2013, by a fine of up to INR 25k on the company.
- Furthermore, any official who violates the Specified Company’s rules is subject to imprisonment for up to six months or a fine ranging from INR 25k to INR 3 lakhs, or both.
Why trust Rajput Jain & Associates to register for MSME?
- There are no hidden charges
- End to end assistance & support.
- Customer satisfaction is our primary goal.
- We have a team of qualified & experienced staff.
- Best services are provided at a reasonable price
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