What Happens If a Company Doesn’t Pay My Small Business on Time?
Quick answer: Once a buyer crosses the legal payment deadline (maximum 45 days), three consequences begin automatically: they owe you compound interest at three times the RBI bank rate (roughly 16.5% a year when the bank rate is 5.50%), they lose the ability to claim that expense in their tax return until they actually pay […]
Read MoreCan a Buyer Legally Delay Paying an MSME Beyond 45 Days?
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- by praveensiinghhal
Quick answer: No. If you are a registered Micro or Small enterprise, Indian law caps the payment period at 45 days — even if both sides signed an agreement saying 60, 90 or 120 days. Any clause stretching payment beyond 45 days is simply not enforceable against you, and once the deadline passes, the buyer […]
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