Delayed invoices create practical questions for business owners. The answer often depends on eligibility, the contract, registration timing and the records available.
Section 15 limits a written payment period to no more than 45 days from acceptance or deemed acceptance of goods or services. The applicable deadline depends on the agreement and statutory rules.
No. The relevant protections are for eligible micro and small enterprises, subject to the applicable conditions. A medium enterprise should not assume that it has the same route.
Eligible micro and small service enterprises may be covered, but the business activity, registration and transaction facts must be checked.
Do not assume that all trading activities qualify. Check the current official guidance for the activity and transaction.
No. Registration does not automatically provide retrospective protection for supplies completed before registration. The relevant dates should be reviewed.
It is an official online facility for eligible micro and small enterprises to submit delayed-payment applications for consideration through the relevant process.
It supports digital dispute-resolution processes for eligible delayed-payment matters. Check the current official guidelines to identify the relevant route.
Section 16 provides for compound interest with monthly rests at three times the RBI-notified bank rate, subject to the legal requirements. The calculation should be checked carefully.
Review the contract, delivery or completion evidence, acceptance records and correspondence. The dispute may require closer legal assessment.
No. Filing does not guarantee settlement, a favourable outcome or immediate recovery.
Reconcile the outstanding balance, verify eligibility, organise the evidence and review the current official filing instructions before proceeding.
For a small business, an unpaid invoice is more than an accounting entry. It can affect salaries, supplier payments, rent, stock purchases and the ability to accept new orders. You may have delivered the goods, completed the project or provided the service as agreed. Yet, weeks later, the customer keeps …
