Those businesses, shops or firms which are having a yearly turnover of around Rs.50 crore or more, now, must offer digital payment options to buyers as the government is moving towards the less-cash economical system.
The firms have been given time till January 31st, 2020 and after that, the penalty will begin to charge approximately Rs.5000/- a day.
Penalty For Being Non-Digital
CBDT, the Central Board of Direct Taxes, claimed that they have given considerable amount of time to shop owners for the digital payment installations. Anybody who fails to install the same will be fined under Section 271DB of the act of Finance, after January 31st, 2020.
The digital payments are not just safe and reliable but also easy and quick! Moreover, digital payments are precise and exact. There is no here and there for a rupee or two.
It has also been mentioned that online payment modes such as BHIM UPI, Adhaar Pay, UPI-QR Code are low-cost digital payment modes that the owners can provide to the customers without any MDR tax issues.
Consequently, any charge including the MDR shall not be applicable on or after January 1st, 2020 on payment made through prescribed electronic modes”, the CBT circular said.