Module: General Practice
Q43: Under the MSMED Act, 2006, what is the maximum time period allowed for a buyer to make payment to a Micro or Small supplier if there is a written agreement?
✅ Correct Answer: B
Correct Option: B Concept: Protection Against Delayed Payments (Section 15). The Rule: 1. No Agreement: Payment must be made within 15 days of acceptance of goods.
2. With Agreement: The credit period agreed upon applies, BUT it strictly cannot exceed 45 days.
Consequence: If payment is delayed beyond 45 days, the buyer is liable to pay compound interest with monthly rests at three times the Bank Rate notified by the RBI (Section 16).
2. With Agreement: The credit period agreed upon applies, BUT it strictly cannot exceed 45 days.
Consequence: If payment is delayed beyond 45 days, the buyer is liable to pay compound interest with monthly rests at three times the Bank Rate notified by the RBI (Section 16).