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Late payment costs your buyer 3x the bank rate.

See the compound interest your buyer legally owes you today.

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  • Sec 15Legal due date
  • Sec 16Interest owed
  • 43B(h)Buyer's tax deduction

“the buyer shall … be liable to pay compound interest with monthly rests to the supplier on that amount … at three times of the bank rate notified by the Reserve Bank.”

MSMED Act, 2006 · Section 16

Sample billAn example invoice, checked on 28 Oct 2026

FMCG company, Indore should have paid you by 18 Jun 2026

132 days overdue

Legal clock: accepted 4 May 2026, legally due 18 Jun 2026 on day 45. 28 Oct is day 177: 132 days overdue.
Invoice amount
₹3,50,000
Legal due date
18 Jun 202645 days after acceptance on 4 May 2026. The 90-day term in writing is capped at 45 by Section 15.
Interest owed so far
₹21,322Section 16 interest from 19 Jun 2026 at 16.50% a year, compounded monthly.
Total now due
₹3,71,322
Buyer's tax deduction
Blocked until paidUnder Section 43B(h) the buyer cannot claim this as a deduction until they pay. Unpaid by 31 Mar 2027, they lose it for FY 2026–27.

Receivo is a tool, not a law firm, and this is not legal advice.

Interest is compounded monthly at three times the RBI bank rate, per Section 16.

Why late invoices stay late

  1. 01Late payments eat your working capital.
  2. 02You have never charged the interest you are owed.
  3. 03You do not know how to calculate it.

3 simple steps

How it works

From invoice to legal position. No spreadsheets, no legal reading, and every figure shown so your CA can check it.

  1. 01

    Add an invoice

    Enter the amount, the day your buyer accepted the goods or services, and any payment term in writing.

    Under a minute
  2. 02

    See your legal position

    Receivo works out the Section 15 due date, the Section 16 interest owed to date and whether your buyer's 43B(h) deduction is at risk.

    Sec 15 · Sec 16 · 43B(h)
  3. 03

    Track every buyer

    Your dashboard keeps every invoice in one ledger, most overdue first, with the interest recalculated each day.

    Updated daily

Who it is for

Medium enterprises and retail or wholesale traders are not covered by Sections 15 and 16; Receivo tells you if that applies.

Read the rules in plain words →
  • Udyam-registered micro and small manufacturers and service providers
  • Suppliers selling on credit to larger companies, PSUs or government buyers
  • Chartered accountants tracking dues for small-business clients

What the law says about late payment

Three provisions decide when you must be paid and what a late buyer owes. Here they are in plain words; the rules page quotes each Act in full.

Section 15

MSMED Act, 2006 · Liability of buyer to make payment

Your buyer must pay by the date agreed in writing. With nothing in writing, they must pay within 15 days of accepting the goods or services. No written term can stretch past 45 days.

Section 16

MSMED Act, 2006 · Date from which and rate at which interest is payable

Pay late and the buyer owes compound interest, added every month, at three times the RBI Bank Rate. It starts the day after the due date, and no contract can waive it.

Section 43B(h)

Income-tax Act, 1961 · Certain deductions to be only on actual payment

Inserted by the Finance Act 2023 from FY 2023–24: a buyer who pays a micro or small supplier after the Section 15 limit can claim that expense only in the year they actually pay.

Read the full rules, with examples →

Section 16 rate used by Receivo: 3 × the RBI Bank Rate of 5.50% (effective 5 December 2025) = 16.50% a year, compounded monthly. Still unpaid? Section 18 lets you refer the dispute to your state's MSE Facilitation Council via the MSME Samadhaan portal.

Receivo Pro

We chase your buyers. You stay polite.

Automatic reminders that get firmer as the interest grows. In early access now.

  1. 1Before dueA polite reminder, sent by Receivo
  2. 2Due dateA reminder naming the legal date
  3. 3OverdueFirmer follow-ups with the interest owed
  4. 4Still unpaidA legal notice, only when you approve
  5. 5Last stepA ready-to-file MSME Samadhaan pack
  • Every message is logged as evidence
  • Nothing formal goes out without your OK

Pricing

Free

₹0

  • Legal due date for every invoice
  • Section 16 interest, recalculated daily
  • 43B(h) deduction status for each buyer
  • One dashboard for all your invoices
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Receivo Pro · Early access

₹199/month

  • Everything in Free
  • Polite reminders timed to each legal due date
  • Firmer follow-ups that state the interest owed
  • Legal notice and MSME Samadhaan filing pack, on your approval

Coming soon. Nothing to pay today: sign up, save an invoice and tell us you are interested.

Interest compounds every month the invoice stays unpaid.

Create a free account with just your email, then add your own invoices. Each one shows its legal due date and the interest owed.

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