"30 days PDC" means the buyer pays by a post-dated cheque (PDC) dated 30 days after the invoice or delivery date, usually handed over at the time of delivery or invoice. "45 days PDC", "60 days PDC" and "90 days PDC" work the same way with longer periods. The seller presents the cheque on or after its date. If it bounces for insufficient funds, Section 138 of the NI Act applies like any other cheque given for a debt.
How the term is used in practice
There are two common readings, and you should write down which one you mean:
- Cheque at delivery, dated later (most common): the buyer hands over a cheque at delivery dated 30 days after the invoice. Example: invoice on 1 March, cheque dated 31 March, given on 1 March.
- Cheque later: some buyers read "30 days PDC" as "we will give a cheque within 30 days", or as a cheque handed over after 30 days and dated even later. This effectively doubles your credit period.
A clear purchase order line removes the doubt: "Payment: post-dated cheque dated 30 days from invoice date, to be handed over with delivery. Goods released only against PDC."
| Term | Cheque date (from invoice of 1 April) | Typical use |
|---|---|---|
| 30 days PDC | 1 May | Distributors, regular trade buyers |
| 45 days PDC | 16 May | MSME supply within the MSMED 45-day limit |
| 60 days PDC | 31 May | Larger buyers, project supplies |
| 90 days PDC | 30 June | Long credit; check MSMED Act and Section 43B(h) issues |
MSMED Act and tax angle
If you are a Udyam-registered micro or small enterprise, Section 15 of the MSMED Act requires the buyer to pay on the agreed date, and an agreed period cannot exceed 45 days from the day of acceptance of the goods or services. A "60 days PDC" or "90 days PDC" term does not override that limit: interest under Section 16 at three times the RBI bank rate, compounded monthly, can run from the 46th day. See 45-day payment rule.
Separately, under Section 43B(h) of the Income-tax Act, a buyer cannot deduct payments to micro and small enterprises in the year unless they are actually paid within the MSMED time limit. Long PDC terms can therefore hurt the buyer too.
If the PDC bounces
A post-dated cheque becomes a cheque on its date. If it is presented within three months of that date and returned for funds insufficient, exceeds arrangement, stop payment or similar reasons, you have a Section 138 remedy: notice within 30 days of the return memo, 15 days for the buyer to pay, complaint within one month after. Courts have held that a PDC given towards an existing liability, including instalments, is a cheque for a legally enforceable debt.
- Do not present before the cheque date; it will be returned as post-dated and is not a Section 138 case.
- Do not hold it beyond three months from the date; it becomes stale.
- If the buyer asks you to "hold" the cheque, get the request and the new date in writing.
See cheque return reason codes for what each return means.
Managing PDCs well
Keep a PDC register with cheque number, bank, amount, date and invoice number, and present each on its date. Issue invoices that state the PDC term, using free GST billing on FundRaksha Book (first 300 invoices free). Before agreeing to a long PDC term with a new company, check its MCA record: see how to check company details on MCA.
If a PDC has bounced, FundRaksha Legal sends the Section 138 notice within 24 hours, with a 30% fee only on recovery.
Last reviewed: 2026-10-20. Information for Indian businesses; not legal advice.