My client has not paid my invoice. What can I do?
Start with your category. A micro or small manufacturer or service provider, registered on Udyam before the order, is covered by sections 15 and 16 of the MSMED Act 2006. The buyer had to pay by the date you agreed in writing, or within 15 days of accepting the goods or services if you agreed none. An agreed period cannot pass 45 days from acceptance.
Once that date passes, the buyer owes compound interest with monthly rests at three times the RBI bank rate. At today's 5.75% bank rate that is 17.25% a year, and each month uses the rate in force when it begins. The amount grows with each month the invoice stays unpaid.
Write to the buyer for the unpaid amount and the interest, by registered post or email. Attach the invoice, proof of delivery and your Udyam certificate.
A medium business, a trader or a supplier without a registration gets no statutory interest from this rule, and the calculator tells you that.
If this is where you are
A buyer has held your invoice past the due date and you want a demand on record with the interest worked out.
MSME delayed payment notice with the interest worked out
A dated payment demand under the MSMED Act, the month-by-month interest working and a sheet to read before you send it.
₹499₹799
Launch price until 30 November
Common questions
Which Udyam category counts?
The category you held on the invoice date. If you are not sure, the calculator gives a figure that holds only if you were micro or small on that date.
What do I attach to a written demand?
The invoice, proof of delivery and your Udyam certificate.
Does the calculator keep what I enter?
No. Nothing you enter is stored. Copy the page link to come back to the same answers.
Want this handled for you? Tell us where you stand and we prepare the papers and take you through the filing.