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MSME delayed payment notice with the interest worked out

How do I send a legal notice to a buyer who has not paid my MSME invoice?

A dated payment demand under the MSMED Act, the month-by-month interest working and a sheet to read before you send it.

  • Notice for payment under the MSMED Act
  • Interest working
  • Before you send

₹499₹799

Launch price until 30 November. ₹799 after that.

Advocate-drafted notices are usually priced ₹1,499 to ₹2,499.

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  • Word to edit and PDF to print, the moment the payment clears
  • Full refund if the documents are not delivered
  • Refund policy

Section 15 of the MSMED Act, 2006 requires a buyer to pay a micro or small supplier by the date agreed in writing, or if none was agreed, before the appointed day, and in no case later than 45 days from acceptance of the goods or services. Section 16 then makes the buyer liable for compound interest with monthly rests, at three times the bank rate notified by the Reserve Bank of India.

The notice states your Udyam registration, the invoice, the date the buyer accepted what you supplied and the date payment fell due. It demands the unpaid amount and the interest, and tells the buyer that you will refer the matter to the Micro and Small Enterprises Facilitation Council under section 18 if it is not paid. You choose how many days the buyer has, from 1 to 90, and the notice gives 15 if you leave it empty.

The interest working sets out each month, the rate in force and the sum carried forward, so the buyer can check every figure. The pack is built for micro and small suppliers of manufacturing or services. A medium enterprise is not a supplier under section 2(n), and a certificate that lists trade needs a closer look, so the pack declines those cases and says why. You can send the notice yourself, or we can send it for you.

Fill in your own

₹499₹799

Launch price until 30 November. ₹799 after that.

Advocate-drafted notices are usually priced ₹1,499 to ₹2,499.

You, the supplier

Your business name *
Your business address *

Your Udyam registration

Udyam registration number *
Date of your Udyam registration *The registration date printed on your Udyam certificate.
Enterprise category *
As printed on your Udyam certificate. This notice is for micro and small enterprises.
What activity does your Udyam certificate list? *
Check the NIC codes on the certificate. Codes starting 45, 46 or 47 are retail or wholesale trade. The notice is built only for manufacturing or services.

The buyer

Buyer's name *
Buyer's address *

The order and the invoice

Date of the buyer's order or contract *The date the buyer first placed the order, by purchase order, email or phone, or signed the contract.
What did you supply? *
Invoice number *
Invoice date *
Invoice amount *The full amount of the invoice.
Amount still unpaid *Interest is worked out on this amount.
Date the buyer accepted the goods or services *The day the buyer accepted what you supplied. Your proof of delivery or acceptance should show it.
Payment date agreed in writingFill this in only if a payment date was agreed in writing. Leave it empty if none was.

The notice and who signs it

Date on the notice *Today, or any day in the next seven days. Interest is worked out up to this date.
Days the buyer has to payA whole number from 1 to 90. Leave it empty to give 15 days.
Name of the person who signs *
Role of the person who signs *

We keep your answers and number so we can help if you ask. Ask us at any time and we delete them.

BuildWright does documentation, filing and compliance facilitation. This tool works from the rules cited on this page and does not give legal advice. We prepare the documents from your answers; you check, sign and send or file them.

Common questions

Who can use a notice under the MSMED Act?

A micro or small enterprise that is a supplier within section 2(n). The pack asks for your Udyam number, its date and the date of the buyer's order, and it will not build the notice for a medium enterprise.

How is the interest worked out?

Under section 16 it is compound interest with monthly rests, at three times the RBI bank rate. The working shows each month at the rate in force on the day it begins, with simple interest on any days left over after the last full month.

How long does the buyer have to pay after the notice?

You decide. Enter a whole number of days from 1 to 90, or leave it empty and the notice gives 15 days from the day the buyer receives it. Keep proof of the date of receipt.

What happens if the buyer still does not pay?

The notice states that you will make a reference to the Facilitation Council under section 18 of the Act. The MSME Samadhaan filing pack prepares that application for one invoice.

Can I see the document before I pay?

Yes. Fill in your details and the page shows the first page of each document with your own answers in it. You pay only if it is what you need.

Can I change the document after I download it?

Yes. Each document comes as a Word file you can edit and a PDF you can print. You can also change your answers and prepare it again before you pay.

What if the payment goes through and the documents do not open?

The page checks the payment again and opens the documents on the same payment, so you are never charged twice. If they still do not arrive, write to us within 7 days and we refund the full amount.

Can you send or file it for me?

Yes. After you download, ask us to take the next step and we handle the sending or filing for you.

Not sure it applies to you?Check with the free MSME Payment Calculator first. Nothing you enter is stored.

Often needed next

Want this handled for you? Tell us where you stand and we prepare the documents and take the next step for you.