New Delhi, Oct.19: From November 1, the new rule of payment is going to be implemented. From next month, it will be mandatory for traders to take Digital Payment. The Ministry of Finance gave this information.
Apart from this, no fee or merchant discount
rate (MDR) will be charged from customers or merchants. This step has been
taken by the government to promote Digital Economy and to curb Black Money. The
CBDT has also invited applications from banks and payment systems providers who
are interested that the government can use their payment systems for this
Digital payment mandatory from 1 November 2019- According to the new rule, this new rule will be applicable to businessmen with a turnover of more than 50 crores. Under this, no fee or charge will be levied for traders for taking payment through electronic mode.
Application will have to be sent for declaring the electronic payment system. Bank name, full address, PAN, registration details have to be emailed. It can be sent to email@example.com by 28 October.
After this, Income Tax Act as well as the Payment and Settlement Systems The act of 2007 was amended. CBDT has said in a circular that the new provisions will come into effect from November 1, 2019.
This step has been taken to promote digital payments in the country. It will be mandatory for business establishments with an annual turnover of more than Rs 50 crore to provide an electronic mode of payment to their customers from November 1.