The CBDT (Central Board of Direct Taxes) will levy a fine on businesses that do not provide the facility to accept digital payments from February 1, 2020, according to multiple media reports.
The circular, which was issued on Tuesday by the CBDT, said that businesses with a turnover of Rs 50 crore and above will be fined Rs 5,000 per day if digital payment facilities are not in place.
The proposal for this was mooted by finance minister Nirmala Sitharaman in the Budget that was presented in July 2019.
The government and the RBI have already directed banks to waive charges for electronic payments online. The government has also proposed to waive off MDR (merchant discount rate) on payments made via RuPay, UPI (Unified Payments Interface) and UPI QR code from January 1, 2020.
Sonata Software looks for acquisitions
Bengaluru-based IT firm Sonata Software is looking for acquisitions to ramp up specific capabilities or gain market access, The Economic Times reported, citing the CEO of the company Srikar Reddy. Sonata Software is looking for companies having expertise in a particular skill, or ones that could give Sonata access to a complementary set of clients or geographic access.
Future's sale to debut on Amazon
Future Group’s ‘Sabse Saste Din’ sale, centred around the Republic Day, will also feature on Amazon.in this time, The Economic Times reported, citing sources. In the sale, products are offered at a discounted price that runs for five-six days at Future Group stores like Big Bazaar and Food Bazaar.
Startups seek parity on permanent establishment rules
Indian startups have requested the government to define PE (permanent establishment) and give them a level-playing field with global tech giants who enjoy a tax advantage, reported The Economic Times. In a letter to the commerce and industry ministry, the finance ministry, the CBDT and the revenue secretary, the startups said that some foreign companies are also conducting tax arbitrage at the global level and not paying any taxes in totality.