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Supplier's interest is 3 times this, compounded monthly.

Supplier bills

Leave the payment date blank if the bill is still unpaid. Leave credit days blank if there is no written agreement (the limit is then 15 days).

SupplierUdyam categoryBill accepted onAgreed credit daysAmount (₹)Paid on
Paste rows from Excel

Copy six columns in this order: supplier, category (micro, small, medium or trader), bill date, credit days, amount, payment date. Dates as DD-MM-YYYY or YYYY-MM-DD.

Disallowed for the year
Unpaid and overdue now
Supplier interest (approx.)

Result for each bill

SupplierDue dateDays lateStatusDisallowed (₹)Interest (₹)

Who is covered

  • Any business buying goods or services, including proprietors, firms, LLPs and companies.
  • Suppliers registered on Udyam as micro or small enterprises, as manufacturers or service providers.
  • Not covered: medium enterprises, and traders (wholesale or retail) even if Udyam-registered.

The time limit

  • With a written agreement: the agreed period, but never more than 45 days from acceptance of the goods or services.
  • No agreement: 15 days from acceptance (or deemed acceptance).
  • Paid late but within the same year: allowed that year. Paid late after the year ends, or not paid: disallowed for the year and allowed in the year it is paid.

Supplier's interest

Under section 16 of the MSMED Act the buyer owes compound interest with monthly rests at three times the RBI bank rate from the due date. This interest is not deductible for income tax. Unpaid amounts and interest are also reported in the tax audit report and in Form MSME-1 by companies.

Before you rely on it

Check each supplier's Udyam certificate and the date it was obtained, and the date of acceptance of goods. Disputed bills, advances and the date of deemed acceptance need judgement. We review these during tax audit.

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