Account Receivables in India

Thank you for saying that my reply was helpful. more  

I agree with views of Mr Ravi Goel.The supplier has to safegaurd his interest by having written cotracts. more  

Let us understand the problem. Big or small Companies do not pay their suppliers on due date and even after 180 days. If you raise an issued they will raise quality considerations and will say goods are not up to the samples or specifications and try to reduce the prices or make a substantial cut in the bill value. If you accept you will get the payment. Corruption is there not only in Govt. but also in private organizations. What is wrong is not with the system or with the implementation with the attitude of the people the culture in which we are brought up. There is law in force which says if the bills are not paid within due date stipulated the buyer has to pay interest and in case of companies which are having turnover of more than one crore such lapses should be reported in tax audit report and in case of companies in the notes on account. But this happens when the supplier registers himself with the buyer as a SME. Otherwise all the audit reports will say that in the absence of data regarding such organization we are unable to report such lapses. This is because the SME supplier cannot complain about big company for the fear of losing the orders or because of quality considerations. For this to get sorted the suppliers should be bold enough to bring it in to the public domain, fight with the buyers etc., etc., and the general level of morals should improve. To improve morals educations on ethical values should start right from the beginning and society should shun those who are not morally good. Will this happen? what AAP and we as its members are going to do to achieve this. Are we going to change ourselves first? Are we prepared to face all problems that may be heaped on us both by the pears and the society? It should start here at the young age. No amount of laws, supervision, punishment, will help to curb the malice. No Government can help us. Please learn to live within your means and try to work hard and to up in the ladder. First we should have self esteem, self confidence and should be able to say we do not want any alms form any body and we live on our own. Is this happening? Are we leading to it? This requires a deed study and commitment on the part of each citizen of this country. We are going by heard mentality. We should come out of this and get the capacity to analyze every aspect and take a decision. Governments should only facilitate us to achieve the goals set for ourselves by creating conducive atmosphere for us to achieve our potential. They should not become an impediment in the way of our achieving our own potential. This should be the only job of Government. It should create and provide enough of infrastructure for education and health and allow the people to use them and come up. Nothing more nothing less. Then only we as a Nation can progress. more  

Well, Dear Sudesh. This is really a big problem, has existed for a long time and has become much more prominent in last 10 - 15 years with all noveu rich with no regard to ethics or morals getting into big positions. Actually the losses incurred by small entrepreneurs on this account far exceed their income. The first and foremost remedy is begin with a written, very well detailed and completely clear contract agreement having all the the terms and conditions spelled out very clearly. Do not come under any kind of pressure to accept the terms which really don't suit you. Also, be very firm not to accept any verbal assignment or verbal assurance. Once the contract is in place, follow the same in letter and spirit. Be very firm and suspend the work in case of non payment or late payment by the employer and do communicate in writing that the onus of losses is on the defaulter. The second step; if you can afford it, have a legal consultant on retainer-ship basis and do file cases and claims against the defaulters. Though it is easier said than done as any professional would find it better to look at other new prospective clients than fight with a bad client. And also; the entire legal procedure is so disgusting; chances are that most professionals would avoid it and this is the fact, unscrupulous people take benefit of. The third and most effective step is to be taken by the administration. No one should be allowed to promote a new project until he has fully cleared all dues of all the parties one has contracted in previous project. There should be an authority to address such complaints and penalties should be stern. more  

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