From November 1, it will be mandatory for commercial establishments with large turnovers to provide digital payment facility to their customers. At the same time, no fee or MDR will also be charged from customers or merchants. This information has been given by the Finance Ministry on Friday. The ministry said that for establishments with turnover of more than Rs 50 crore, it will now become mandatory to provide digital payment facility to customers.
Finance Minister Nirmala Sitharaman said this in his budget speech as well. The finance minister had said that those business establishments with annual turnover of more than Rs 50 crore should provide digital mode of low cost payment to the customers. At the same time, the Finance Minister had said that the expenditure on the transaction should be borne by the RBI and banks.
The Income Tax Act and the Payment and Settlement Systems Act 2007 have been amended following this announcement by the Finance Minister. The CBDT has stated in a circular that the new rules will come into effect from November 1. Explain that CBDT has invited applications from banks and payment systems providers who are willing to use their payment systems for this purpose by the government.
This is considered an important step towards promoting digital payments. Payment through digital mode will make the transaction more transparent in medium and large size business. At the same time, it will also curb tax evasion.