Lawstreet Journal

Government Says B2B Firms Free from Using Only BHIM And Rupay for Transactions

Lawstreet Journal 24 May 2020 6:21pm

Image courtesy: Lawstreet Journal Executive Government Says B2B Firms Free from Using Only BHIM And Rupay for Transactions

The finance ministry decided to free the companies who had a turnover of more than Rs 50 crore and were engaged in only Business to Business (B2B) dealings from the condition set that they could only accept transactions of payments by electronic modes like BHIM-UPI and RuPay on 20th May 2020.

"It is clarified that the provisions of Section 269 S U of the Act shall not be applicable to a specified person having only B2B transactions (i.e. no transaction with retail customer/consumer) if at least 95 percent of the aggregate of all amounts received during the previous year, including the amount received for sales, turnover or gross receipts, are by any mode other than cash," the Central Board of Direct Taxes said in a notification on 20th May 2020.

To increase and expand the number of digital transactions and work towards the goal of a cashless economy, the government released a new condition or proviso, Section 269 S U, in the Finance Act, 2019, mandating an individual operating a business and possessing turnover/sales/gross receipts from the activity of over Rs 50 crore in the instantly preceding previous 12 months to necessarily supply provisions for receiving payments through electronic modes as mandated by the government of India.

In the due course, in December 2019, Unified Payments Interface (UPI) (BHIM-UPI); debit cards facilitated by RuPay; and Unified Payments Interface Quick Response Code (UPI QR Code) were set as the prescribed electronic modes of cashless payments by the Finance Ministry.

The Central Board of Direct Taxes (CBDT) on… Continue Reading...

Tagged: online payment  
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