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.
- 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