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MANDATORY DIGITAL PAYEMENT FROM JANUARY 2020 FRO BUSINESSNWHO HAVE TURNOVER ABOVE RS.50 CRORES

  • Posted By SuperCA
  • On 16 January

MANDATORY DIGITAL PAYEMENT FROM JANUARY 2020 FRO BUSINESSNWHO HAVE TURNOVER ABOVE RS.50 CRORES

Businesses with a turnover of more than Rs 50 crore shall “mandatorily” have to make arrangements to accept payments through electronic modes from November 1, the Central Board of Direct Taxes said on Friday. The top body of the income tax department said no bank or provider of a digital payment system shall “impose any charge on a payer making payment, or a beneficiary receiving payment” through electronic modes.

In order to facilitate both companies and their clients, the government has decided to “prescribe” certain modes of payments for the purposes of “Section 269SU,” it said.

According to a PwC report on the budget, the section mandates every person carrying on a business having turnover (sales or gross receipts) in excess of Rs 50 crore in the immediately preceding financial year to provide the facility for accepting payments through prescribed electronic modes.

The decision is based on the government’s decision to promote digital payments and less-cash economy articulated in the budget presented by finance minister Nirmala Sitharaman on July 5, 2019.

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