The Finance (No. 2) Act, 2019 had introduced Section 269SU which required every person with a business turnover, sales or gross receipts exceeding Rs. 50 crores to mandatorily provide facilities for accepting payments through prescribed electronic modes. The CBDT vide its Notification [No.105/2019/F. No. 370142/35/2019-TPL] dated 30th December 2019 has prescribed such electronic modes, which needs to be provided from 1 January 2020. Details are as under:
i. Prescribed Electronic Modes of Payment
Every person with a business turnover of more than Rs. 50 crores has to mandatorily provide all the following modes for the purpose of acceptance of payment, which is in addition to the facility for other electronic modes of payment, if any, being provided by such person:
- Debit Card powered by RuPay;
- Unified Payments Interface (UPI) (BHIM-UPI); and
- Unified Payments Interface Quick Response Code (UPI QR Code) (BHIM-UPI QR Code).
Note: On perusal of the above notification, it can be inferred that all the 3 alternatives as mentioned in (a), (b) & (c) need to be provided for accepting payment through electronic modes.
ii. Due Date for Compliance & Consequences of Failure to Comply
Every person required to comply with the provisions of Section 269SU must provide the facilities by 1st January 2020.
Every person who fails to offer the prescribed modes (installation & operationalization of the facilities) by 31st January 2020 would be subjected to a penalty of Rs. 5,000 per day of default with effect from 1st February, 2020.