Union Budget – 2019 has mandated acceptance of payments through prescribed electronic modes

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Union Budget – 2019 has mandated acceptance of payments through prescribed electronic modes

Now, showroom, businesses have to mandatorily accept e payment

 In order to achieve the mission of the Government to move towards a less cash economy to reduce generation and circulation of black money and to promote digital economy, it is proposed to insert a new section 269SU in the Act so as to provide that every

person, carrying on business, shall, provide facility for accepting payment through the prescribed electronic modes, in addition

to the facility for other electronic modes of payment, if any, being provided by such person, if his total sales, turnover or gross

receipts in business exceeds fifty crore rupees during the immediately preceding previous year.

In order to ensure compliance of the aforesaid provisions, it is further proposed to insert a new section 27IDB to provide that

the failure to provide facility for electronic modes of payment prescribed under section 269SU shall attract penalty of a sum of five

thousand rupees, for every day during which such failure continues. However, the penalty shall not be imposed if the person proves

that there were good and sufficient reasons for such failure. Any such penalty shall be imposed by the Joint Commissioner.

This amendment will take effect from 1st November, 2019.

 

 

Relevant Section 269SU reads as under:

269SU. Every person, carrying on business, 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, if his total sales, turnover or gross receipts, as the case may be, in

business exceeds fifty crore rupees during the immediately preceding previous year.”.

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