Banking & FinanceDigital PaymentsFinanceFinance

Corporates With Over Rs 50 Cr Turnover is Exempted From Electronic Payments for B2B Transactions

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The finance ministry exempted companies with a turnover of over Rs 50 crore and involved in only B2B transactions from the requirement of accepting payments only by electronic modes like RuPay or BHIM-UPI.

“It is clarified that the provisions of Section 269SU 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 per cent 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 CBDT said in a circular.

To encourage digital transactions and move towards a less-cash economy, the government inserted a new provision, Section 269SU, in the Finance Act, 2019, requiring a person carrying on business and having sales/turnover/gross receipts from the business of more than Rs 50 crore in the immediately preceding previous year to mandatorily provide facilities for accepting payments through prescribed electronic modes.

Subsequently, in December 2019, debit card powered by RuPay; Unified Payments Interface (UPI) (BHIM-UPI); and Unified Payments Interface Quick Response Code (UPI QR Code) were notified as prescribed electronic modes.

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