CBDT on 30th December has issued a notification and a clarification with regard to further facilities a business must provide for accepting payments if his turnover exceeds Rs. 50 crore as mentioned in Section 269SU.
Vide notification 105/2019 Dt. 30.12.2019, CBDT has notified 3 more methods in addition to the existing methods through which assessee should accept payments if his total turnover exceeds Rs. 50 crore and he must provide all the below mentioned facilities. The notification will come into effect from 01.01.2020. The prescribed facilities are:
- Debit Card powered by RuPay.
- Unified Payments Interface (UPI) (BHIM-UPI); and
- Unified Payments Interface Quick Response Code (UPI QR Code) (BHIM-UPI QR Code).
However with another clarification CBDT has notified that the above bank or system provider providing the above facility won’t charge any amount on payer making payment or beneficiary receiving payment, also no charge as Merchant Discount rate (MDR) shall be applicable from 01.01.2020.
Also the above clarification states that the above person needs to install such system till 31.01.2020 and if till the above date such system is not installed penalty of Rs. 5000 per day shall be levied from 01.02.2020 u/s 271DB of the Income Tax act.
It is thus advised to all big businesses having turnover above Rs. 50 crore to install the above system at the earliest for whatever business you are into.
notification for 269SUclarification for section 269SU(1)
If you need assistance you can ask a question to our expert and get the answer within an hour or post a comment about your views on the post and also subscribe to our newsletter for latest weekly updates.
Comments 1