Inserted by Finance Act 2019:

269SU. Every person, carrying on business, if his total sales, turnover or gross receipts, in business exceeds fifty Crore rupees during the immediately preceding previous year shall provide facility for accepting payment through prescribed electronic modes, in addition to the facility for other electronic modes, of payment, if any, being provided by such person.

New Rule: 119AA Modes of payment for section 269SU:

Effective from 1st day of January, 2020

Every person carrying on business:

If he is total sales / Turnover or gross receipts in the business exceed 50CR in the previous financial year (Specified Person) shall provide facility for accepting payment through following electronic modes:

(i) Debit Card powered by RuPay;

(ii) Unified Payments Interface (UPI) (BHIM-UPI); and

(iii) Unified Payments Interface Quick Response Code (UPI QR Code) (BHIM-UPI QR Code)”

  • No Bank / System provider shall impose any charges on payer / Receiver making or receiving payments through electronic modes prescribed U/s 269SU of the act.
  • Even Merchant discount rate (MDR) shall not be applicable on or after 01.01.2020.

Qr code payment , online shopping , cashless technology concept

Penalty for Violation of Section 269SU Provisions under Section Section 271DB

 This Section provides for levy of penalty of 5000/ per day in case of failure by the specified person to comply with the provisions of S/269SU.

Section 271DB of the Act shall not be levied if the specified person installs and operationalises the facilities on or before 31st January, 2020.

Reference:

https://taxguru.in/income-tax/rule-119aa-modes-payment-purpose-section-269su.html

https://taxguru.in/income-tax/clarifications-prescribed-electronic-modes-section-269su.html

Author Bio

Name: CA Harsha
Qualification: CA in Job / Business
Company: INDLA & ASSOCIATES
Location: BANGALORE, Andhra Pradesh, IN
Member Since: 26 Jul 2019 | Total Posts: 3

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3 Comments

  1. ankit3210 says:

    Circular 12/2020 dated 20.05.2020 grants relief from this compliance if “specified person” has only B2B transactions and atleast 95% sales are non-cash

  2. Kasinathan says:

    If there is a business firm (with a turnover of Rs.50 crore) who doesn’t require to receive any payment from his customer, whether he needs to provide these payment options to his customers ? His customer don’t make any payment to the business firm and don’t need this at all. How can this rule be applicable to this business firm ?

  3. Praveen says:

    Dear Sir,

    As per the above explanation it is clear that bank won’t charge any charges for both receiver and payer. My doubt is that whether any limitations to be complied for applying this term/feature. For Example a person cannot send / receive more than 10Crores rupees per Day or something like that. And another question is that whether this 269su will apply for transaction outside india.like send or receive in dollars from US. if yes then how can they comply with this interfaces???

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