Section 15 requires a buyer who has accepted goods or services from a micro or small enterprise to pay on or before the date agreed in writing, and in any case within 45 days of the day of acceptance or deemed acceptance. If no period is agreed, payment is due within 15 days (the "appointed day"). Interest under Section 16 starts the day after.
How Section 15 works in India
The clock starts on the "day of acceptance": the day the goods or services are actually delivered, or, if the buyer objects in writing within 15 days of delivery, the day the objection is removed. If the buyer does not object within 15 days, acceptance is deemed on the day of delivery. From that day, count the agreed credit period (maximum 45 days) or, if none, 15 days. Payment made after that date attracts Section 16 interest.
- Agreed 30 days in writing: due on day 30.
- Agreed 60 or 90 days in writing: due on day 45 (capped).
- Nothing agreed, or only a verbal understanding: due on day 15.
Why it matters for getting paid
Most Indian suppliers accept "payment after 60 or 90 days" as normal. Section 15 means a registered micro or small supplier is legally entitled to payment by day 45 whatever the PO says, and the buyer's tax deduction depends on it under Section 43B(h). It also makes the 15-day rule important for the many suppliers who work on verbal terms or running accounts.
How FundRaksha uses it
FundRaksha's legal notice states the Section 15 due date for each invoice and tabulates the interest from that date, so the buyer sees exactly what is owed and why. This precision is one reason about 60% of cases settle before any filing. Clients get a dedicated advocate within 24 hours and pay only 30% on recovery.
Worked example (hypothetical)
A micro printing unit in Delhi delivers packaging worth ₹2,50,000 on 1 June. The PO says "payment 90 days". No objection is raised. Deemed acceptance is 1 June, and Section 15 caps the due date at 16 July (45 days). The buyer pays on 30 August, 90 days after delivery as the PO allowed, but 45 days late under the Act. Assuming a bank rate of 6.5% (19.5% a year), 1.5 months of monthly compounding on ₹2,50,000 is about ₹6,100 of interest the supplier can claim on top of the principal.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.