Guides · MSME
The appointed day, explained
The appointed day is a precise idea in the MSMED Act: it is the day after payment was due, the moment an overdue payment to a micro or small supplier crosses the line and interest begins to build.
How the appointed day is fixed
The payment clock runs from the buyer's acceptance, or deemed acceptance, of the goods or services. Where the two sides agreed a period in writing, payment is due on that date, which can never exceed 45 days from acceptance; where nothing is agreed in writing, payment is due within 15 days. The day after that due date is the appointed day.
In other words, the appointed day is not the due date itself but the first day of being late.
Why the date matters
From the appointed day, Section 16 makes the buyer liable for compound interest with monthly rests at three times the RBI bank rate. So pinning the appointed day pins the moment interest starts — which is why the acceptance date, and the due date it drives, have to be captured accurately.
Get the acceptance date wrong and the whole overdue calculation shifts, which is why it is recorded, not assumed.
How Lekha marks the clock
Lekha ages each bill against the MSME 45-day clock — days since acknowledgement, with the overdue ones flagged — so the point a receivable crosses into overdue is visible per bill.
Lekha records and tracks; it does not compute your statutory interest, which is why the interest estimate lives in a separate tool.
Questions
- What is the appointed day under the MSMED Act?
- The day after payment was due — the moment an overdue payment to a micro or small supplier crosses the line and statutory interest starts to build.
- How is the appointed day worked out?
- From acceptance of the goods or services: payment is due on the agreed date (never beyond 45 days from acceptance), or within 15 days if nothing is agreed in writing. The day after is the appointed day.
- Why does the appointed day matter?
- Because Section 16 interest runs from it. Pinning the appointed day pins when interest starts, which is why the acceptance and due dates must be captured accurately.
This guide is general information, not legal or tax advice. Confirm the current rules and your own circumstances for any specific case.