What is MSMED Act?

Aim of the act:

  1. Micro Enterprise: Investment up to Rs. 1 Crore and Turnover up to Rs. 5 Crore.
  2. Small Enterprise: Investment up to Rs. 10 Crore and Turnover up to Rs. 50 Crore.
  3. Medium Enterprise: Investment up to Rs. 50 Crore and Turnover up to Rs. 250 Crore.

PAYMENT TO MSMEs

Sections which specify about the payment and interest:

Date from when the interest is payable:

 Rate at which interest is payable:

Thus, the buyer is directed to release the due payments of MSME well within 45 days of acceptance of goods so as to avoid penalty in the shape of interest at the rate of three times the rate notified by the RBI for the period of delay.

PENALTIES

MSME COUNCIL

Resolving period of a dispute: