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Outstanding Payment & MSME Registration

 

Our company is registered under the MSME Act, which prescribes specific legal mandates regarding payment terms. Unfortunately, we've observed that payments for certain invoices have exceeded the agreed timeframe.

We understand that delays can happen for various reasons, but it's important to highlight the implications of extended payment periods under the MSME and Income Tax Acts:

  • Mandatory Interest Payments: Delayed payments incur an interest threefold the RBI-notified bank rate, compounded monthly post-due date.
  • Tax Deduction Implications: Expenditures on payments delayed beyond 45 days aren't deductible in the fiscal year of accrual, affecting your tax liabilities.
  • Audit Disclosure Obligations: Our annual accounts will reflect outstanding payments, potentially impacting financial reporting and stakeholder relations.

Find our MSME registration certificate attached.

We urge you to address this payment at your earliest convenience to prevent unnecessary complications and maintain our beneficial partnership.

For any questions or further clarifications, please feel free to contact us.