Is B2B business require to provide facilities for accepting payments through electronic modes

Is B2B business required to provide facilities for accepting payments through electronic modes section 269SU of the Income-tax Act, 1961 -Refer full article

To encourage digital transactions and move towards a less-cash economy, a new provision namely Section 269SU was inserted in the [Income-tax Act, 1961 (“the Act”), vide the Finance (No.2) Act 2019. This section requires every person carrying on business and having sales/turnover/gross receipts from the business of more than Rs 50 Crores (“specified person”) in the immediately preceding previous year to mandatorily provide facilities for accepting payments through prescribed electronic modes.

Subsequently, vide notification no. 105/2019 dated 30.12.20 19

  • Debit Card powered by RuPay;
  • Unified Payments Interface (UPI) (BH IM-UPI); and
  • Unified Payments Interface Quick Response Code (UPI QR Code) (BHIM-UPI QR Code) were notified as prescribed electronic modes.

It is now 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% 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

Priyansh Minocha

Priyansh Minocha is C.E.O and cofounder at Amonest Consultancy Services and C.E.O and Founder at Casolutionsglobal

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