CBDT exempts B2B businesses from requirement of mandatory e-payment facility u/s. 269SU subject to c
To promote digital transactions in the economy, Government of India introduced section 269SU of the Income-tax Act. Under this section, a person having turnover exceeding Rs. 50 Crore (‘specified person’) in the immediately preceding previous year shall provide online payment facilities for accepting payments through prescribed electronic modes. Subsequently, the prescribed modes were clarified by CBDT. However, such modes have a maximum payment limit per transaction or per day, hence, the same is not relevant in Business to Business (‘B2B’) transactions, which generally receive large payments through other electronic modes of payment such as NEFT or RTGS.
Therefore, CBDT has clarified that section 269SU shall not apply to specified persons having only B2B transactions (i.e. no transaction with retail customer/consumer) provided that at least 95% of aggregate of all amounts received during the previous year including amount received for sales, turnover or gross receipts, are by any mode other than cash.