The Finance (No. 2) Act, 2019 introduced Section 269SU which required every person with a business turnover, sales or gross receipts exceeding Rs. 50 crores (“specified person”) to mandatorily provide facilities for accepting payments through prescribed electronic modes.
The Central Board of Direct Taxes (CBDT) vide its Notification dated 30th December 2019 has prescribed such electronic modes, which needs to be provided from 1st January 2020. Details of which are as under:
Every person with a business turnover of more than Rs. 50 crores during the immediately preceding previous year has to mandatorily provide all the following modes for the purpose of acceptance of payment, which is in addition to the facility for other electronic modes of payment, if any, being provided by such person:
(a) Debit Card powered by RuPay;
(b) Unified Payments Interface (UPI) (BHIM-UPI); and
(c) Unified Payments Interface Quick Response Code (UPI QR Code) (BHIM-UPI QR Code).
Every person required to comply with the provisions of Section 269SU must provide the facilities by 1st January 2020.
In order to ensure the compliance of the above provisions, a new Section 271DB has been inserted which provides that in case the specified person fails to offer the prescribed modes (installation & operationalization of the facilities) by 31st January 2020, he/she shall be subject to a penalty of Rs. 5,000 per day of default with effect from 1st February, 2020.
Any payments made through the prescribed electronic modes would not be subject to transaction charge or any other charge including Merchant Discount Rate (MDR) on or after 1st January 2020.
Sources:
(i) Circular No. [32/2019 F. No. 370142/35/2019-TPL] (30-12-2019)
(ii) Notification No. [105/2019/F. No. 370142/35/2019-TPL] (30-12-2019)
