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    IndiaGovt to waive service tax on card transactions up to Rs 2,000

    Govt to waive service tax on card transactions up to Rs 2,000

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    Govt to waive service tax on card transactions up to Rs 2,000

    New Delhi, Dec 8 (PTI) Government will waive service tax on debit and credit card transactions of up to Rs 2,000 in a bid to promote digital transactions amid cash crunch following withdrawal of old Rs 500 and 1,000 banknotes.

    The government has decided to “exempt services by an acquiring bank to any person in relation to settlement of an amount up to Rs 2,000 in a single transaction through credit, debit card or other payment card service”, sources said.

    A notification to this effect will be tabled by Minister Arun Jaitley in Parliament.

    Following demonetisation of old high value notes, there has been a cash crunch in the country as people have been making a beeline for banks and ATMs to withdraw new currency.

    The government has been taking steps to promote cashless or digital transactions to take towards a less-cash economy.

    Recently, the government asked banks to install additional 10 lakh PoS terminals by March 31 in different parts of the country.

    The service tax notification of June 2012 will be amended to include exemption on credit and debit cards, the sources added.

    As of now, services provided by organisations such as United Nations and other bodies are exempt from tax.

    A range of other services provided by arbitral tribunals, testing of newly developed drugs, educational institutions, trade unions, general insurance business and bodies, among others, too are exempt from the levy.

    Northlines
    Northlines
    The Northlines is an independent source on the Web for news, facts and figures relating to Jammu, Kashmir and Ladakh and its neighbourhood.

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