Businesses to be fined Rs 5,000 per day for not offering digital payment facility

Agencies
December 31, 2019

New Delhi, Dec 31: Shops, business firms or companies with an annual turnover of Rs 50 crore or more and required to provide digital payment facilities to customers as part of government's stride towards a less-cash economy, will not have to pay any penalty till January 31 for not installing the system.

They would, however, be made to cough up Rs 5,000 per day as penalty for failing to accept payments in the prescribed digital modes from February 1, 2020.

Clarifying this, the Central Board of Direct Taxes (CBDT) said that the move was aimed at giving sufficient time to the specified person to install and operationalise the facility for accepting payment through prescribed electronic modes.

In a circular, the CBDT said that penalty under Section 271DB of the Finance Act shall not be levied if the specified person installs and operationalises the facilities on or before January 31, 2020.

"However, if the specified person fails to do so, he shall be liable to pay a penalty of five thousand rupees per day from 1st February, 2020 under section 271DB of the Act for such failure," the circular dated December 30 said.

In order to encourage digital economy and move towards a less cash economy, a new provision was inserted in the Income Tax Act to require every person having a business turnover of more than Rs 50 crore to mandatorily provide facilities for accepting payments through prescribed electronic modes.

RuPay and UPI are among the prescribed mode of payment for digital transactions without any Merchant Discount Rate (MDR). The MDR is the percentage of the digital transaction that a merchant pays to banks. This cost is most often passed on to the customers.

In her Budget speech in July, Finance Minister Nirmala Sitharaman had listed out BHIM UPI, UPI-QR Code, Aadhaar Pay, certain Debit cards among others as the low-cost digital modes of payment which could be offered without levying MDR in order to promote a less-cash economy.

The Minister last Saturday announced that the MDR charges for businesses with over Rs 50 crore annual revenues will be waived off from January 1, 2020.

Section 10A of the Payment and Settlement Systems Act, 2007 which was inserted by the Finance Act provides that no bank or system provider shall impose and charge on a payer, or a beneficiary receiving payment, through electronic mode prescribed under Section 269SU of the Act.

"Consequently, any charge including the MDR shall not be applicable on or after January 1, 2020 on payment made through prescribed electronic modes," the CBDT circular said.

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News Network
May 3,2020

Bengaluru, May 3: Renowned Kannada poet KS Nissar Ahmed passed away on May 3.

Winner of several awards including Karnataka Sahitya Akademi Award for Poetry, Rajyotsava Award, Padma Shri among others, Ahmed died at the age of 84

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News Network
June 16,2020

Shivamogga, Jun 16: The Deputy Commissioner on Tuesday announced a ban on movement of heavy goods vehicles in the Agumbe ghat section between June 15 and October 15 as a precautionary measure, as there was possibility of landslides due to heavy rain during the monsoon season.

All trucks over 12 tonnes will be prohibited from passing through the ghat, DC K B Shivakumar said in a statement here.

The authorities have suggested two alternative routes for the movement of heavy freight vehicles – the Shimoga-Thirthahalli-Sringeri-Kerekatte-Karkala-Udupi-Mangaluru route and the Shimoga-Thirthahalli-Mastikette-Hulikal-Hosangadi-Siddapura-Udupi-Mangaluru route.

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News Network
January 6,2020

Bengaluru, Jan 6: Cab aggregators are once again in news for the wrong reasons after an Ola cab driver misbehaved with a 34-year-old woman passenger and even threatened to kill her when she raised an alarm.

But what followed was worse. The woman, a software engineer, immediately called the Ola emergency number following which they asked her to check if the driver was drunk. She later pressed the emergency button on the Ola app but received a message asking her to dial 100. After the aggregator failed to help her, she said she was lucky to be saved by the public.

Reacting to the incident, an Ola spokesperson said, “We regret the unfortunate incident and have immediately terminated the driver-partner from the platform upon receiving the complaint.”

Shruthi G (name changed), an employee at a software company at Bagmane Tech Park in Mahadevapura, booked an Ola cab after her work in the evening of January 3. She booked pick-up stops at two locations as she had to pick her four-year-old daughter from the day-care centre, which is 2 km away from her house.

However, around 6.22 pm, when the cab reached Malleshpalya near Kids Castle, the driver did not stop the vehicle. He asked her to get down at the last drop location. She told him to stop and tried to open the doors but he locked the doors, insisting that she sit in the car. When she resisted, he held her hands and abused her; he even threatened to kill her if she raised an alarm.

The victim said she pressed the emergency button on the app twice but only got a message advising her to call the police.

When she called the Ola emergency number, the person at the other end asked about her condition and to check whether the driver was drunk. They called back after one-and-a-half hours when she was filing a complaint at the police station.

“Ola did not make any efforts to reach out to the police or do anything to track my location and help me in that situation,” she said.

The victim called 100 and the staffer at the control room asked her which area she was in. Since she was familiar with the area, Shruthi was able to give her location.

“First they told me that the area comes under Baiyappanahalli. Later, they said it comes under HAL. Finally, they figured out the location. It took 20 minutes for the police to reach the spot,” she said.

What saved Shruti was her sheer instinct and luck. Alone in the cab, she started raising an alarm. Luckily, commuters in the other vehicles next to the cab noticed her screaming for help and stopped the driver.

“If this is the kind of security Ola provides its customer, it is very questionable,” she said. “If we have to really call the police during an emergency then why they put out the number and emergency button, it’s a waste of time during that crucial situation. If they directly told us to dial 100 during an emergency, it will save time. Lakhs of commuters take Ola cabs thinking it is safe but they have no mechanism to check their drivers and track their customers in danger.”

Baiyappanahalli police said the accused Bhimashankar Malged was arrested and remanded in judicial custody following the complaint.

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