LARGE COS TO PAY SSIS 18% ON DUES

Large enterprises may soon have to pay interest rate as high as 18% on unpaid dues of purchases from small scale enterprises. The much awaited policy decision has become operational with the Micro, Small and Medium Enterprises Development (MSMED) Act coming into effect from October 2, 2006. Companies will now have to pay the interest on their liability after the Act comes into play. The interest rate charged will be compounded on a monthly basis. Buyers will also have to declare outstanding amounts to SSIs in their balance sheet as per the Act.