{"id":2567,"date":"2020-05-21T07:45:16","date_gmt":"2020-05-21T07:45:16","guid":{"rendered":"https:\/\/www.gstpractitioners.in\/blog\/?p=2567"},"modified":"2020-05-21T08:05:45","modified_gmt":"2020-05-21T08:05:45","slug":"cbdt-issues-clarification-to-exempt-the-b2b-business-from-applicablility-of-section-269su-read-circular","status":"publish","type":"post","link":"https:\/\/www.gstpractitioners.in\/blog\/cbdt-issues-clarification-to-exempt-the-b2b-business-from-applicablility-of-section-269su-read-circular\/","title":{"rendered":"CBDT issues clarification to exempt the B2b business from applicablility of Section 269SU [Read Circular]"},"content":{"rendered":"
<\/span> 677<\/span><\/div>
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CBDT issues clarification with respect to the prescribed electronic modes under section 269SU of the Income-tax Act, 1961 vide Circular No.12\/2020 dated 20th May, 2020.<\/span><\/strong><\/span><\/h4>\n<\/div>\n<\/div>\n
A new provision namely Section 269SU was inserted in the Income-tax Act, 1961, vide the Finance (No.2) Act 2019. This section requires every person carrying on business and having sales\/turnover\/gross receipts from business of <\/span>more than Rs 50 Crores<\/span><\/strong> (“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<\/span><\/div>\n
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(i) Debit Card powered by RuPay;
\n(ii) Unified Payments Interface (UPI) (BH IM-UPI); and<\/div>\n
(iii) Unifi ed Payments Interface Quick Response Code (UPI QR Code) (BHIM-UPI QR Code) were notified as prescribed electronic modes.<\/div>\n
2. Representations have been received stating that the above requirement of mandatory facility for payments through the prescribed electronic modes is generally applicable in B2C (Business to Consumer) businesses<\/strong><\/span>, which directly deal with retail customers\u00a0 Moreover, since the prescribed electronic modes have a maximum payment limit per transaction or per day they are not so relevant to B2B (Business to Business)<\/strong> businesses, which generally receive large payments through other electronic modes of payment such as NEFT or RTGS.<\/strong> Mandating such businesses to provide the facility for accepting payments through prescribed electronic modes would cause administrative inconvenience and impose additional costs.<\/div>\n
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3. In view of the above, it is hereby CBDT\u00a0 issued clarification that the provisions of section 269SU of the Act shall not be applicable to a specified person having only B2B transactions<\/strong><\/span> (i.e. no transaction with retail customer\/consumer) if at least 95% of aggregate of all amounts received during the previous year, including amount received for sales, turnover or gross receipts, are\u00a0 by any mode other than cash.<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Read Circular Here <\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

677 CBDT issues clarification with respect to the prescribed electronic modes under section 269SU of the Income-tax Act, 1961 vide …. <\/p>\n","protected":false},"author":1,"featured_media":2569,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,37,44],"tags":[],"class_list":["post-2567","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-gstp","category-income-tax"],"gutentor_comment":0,"_links":{"self":[{"href":"https:\/\/www.gstpractitioners.in\/blog\/wp-json\/wp\/v2\/posts\/2567","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gstpractitioners.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gstpractitioners.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gstpractitioners.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gstpractitioners.in\/blog\/wp-json\/wp\/v2\/comments?post=2567"}],"version-history":[{"count":4,"href":"https:\/\/www.gstpractitioners.in\/blog\/wp-json\/wp\/v2\/posts\/2567\/revisions"}],"predecessor-version":[{"id":2573,"href":"https:\/\/www.gstpractitioners.in\/blog\/wp-json\/wp\/v2\/posts\/2567\/revisions\/2573"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gstpractitioners.in\/blog\/wp-json\/wp\/v2\/media\/2569"}],"wp:attachment":[{"href":"https:\/\/www.gstpractitioners.in\/blog\/wp-json\/wp\/v2\/media?parent=2567"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gstpractitioners.in\/blog\/wp-json\/wp\/v2\/categories?post=2567"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gstpractitioners.in\/blog\/wp-json\/wp\/v2\/tags?post=2567"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}