HOW TO CALCULATE INTEREST AMOUNT ON DELAYED PAYMENT FOR THE CASE FILED UNDER MSME SAMADHAAN ? | PAYMENT RECOVERY | DELAYED PAYMENT MONITORING SYSTEM
As we know, as per The Micro, Small And Medium Enterprises Development Act, 2006 the Buyer has to pay heavy interest to the Seller for the delayed payments.
As per this Act, Section 2(b) defines “appointed day” as the day following immediately after the expiry of 15 Days from the day of acceptance or the day of deemed acceptance of any goods and services.
Also, Section 16 states that "Where any buyer fails to make payment of the amount to the supplier, as required under section 15, the buyer shall, notwithstanding anything contained in any agreement between the buyer and the supplier or in any law for the time being in force, be liable to pay compound interest with monthly rests to the supplier on that amount from the appointed day or, as the case may be, from the date immediately following the date agreed upon, at three times of the bank rate notified by the Reserve Bank".
Meaning thereby that in case of Delayed Payment, the Seller shall be entitled to recover its dues, with interest rate of 3 times the Bank Repo Rate as notified by the Reserve Bank of India from time to time. This is updated on the RBIs official website.
But how is this Interest amount calculated? In this video Anmol Raj Bakshi, Payment Recovery Expert states the process by which this interest amount is calculated.
The Formula Used is –
CI = P(1 + (3R/12) )12t -
where,
P is the principal Amount
amount of the Invoice,
R is the Bank Repo Interest
Rate notified by the RBI in
decimal form,
and T is the time in Years.
You may apply the above formula in MS Excel to do calculation where there are multiple invoices.
At times few MSME Councils require this interest calculation to be attested by a Chartered Accountant.
Few Websites can also help you calculate this compound interest with monthly rests the link to the same is –
1) [ Ссылка ]
2) [ Ссылка ]
MSME Samadhaan Delayed Payment Monitoring System was launched by Ministry of Micro, Small and Medium Enterprises (MSME) where Micro and Small Enterprises (MSEs) can file their cases online regarding delayed payments and get their recovery done within 90 Days alongwith Interest.
If you need any help in filing the case or calculating the interest then you can contact us on the details mentioned below -
MSME LEGAL HELP
Website - www.bakshiandassociates.com, www.msmelegalhelp.com
Mobile - 7982637108 , 9873750515, 9811680103, 9953030208 and 9811099501
E-mail ID - info@msmelegalhelp.com , anmol@bakshiandassociates.com
info@bakshiandassociates.com, anmolbakshiandassociates.com.
Location - [ Ссылка ]
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JAI GURU JI.
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