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

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

By: PTI | New Delhi | Updated: December 8, 2016 6:33 pm
service tax, no service tax, no service tax on cards, plastic money, cashless economy, service tax debit cards, credit card service tax, The government has been taking steps to promote cashless or digital transactions to take India towards a less-cash economy.

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 transacted trough credit, debit card or other payment card service”, sources said.

WATCH VIDEO | Government To Waive Service Tax On Debit, Credit Card Transactions Of Up To Rs 2,000

A notification to this effect will be tabled by Finance 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 India 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 international 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 sports bodies, among others, too are exempt from the levy.

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  1. S
    SubbuI
    Dec 8, 2016 at 1:01 pm
    BYNOT CHARGIG SERVICE TAX ON CREDIT AND DEBT CARD SWIPING, HOW MANY POOR BPL PEOPLE WILL BENEFFIT? CASH LESS OR NO CASH WHICH IS MORE PREVAIL NOW IN INDIA? WILL THE ECONOMY LIZARDS WILL EXPLAIN COMMON MAN? INVISIABLE AND UNREACHABLE BENEFITS FOR WHOM?lt;br/gt;IS GOVERNMENT VPANIKING WITH DAY TO DAY IRRELEVENT CHANGES?lt;br/gt;GOD KNOWS WHAT IS GOING ON?
    Reply
    1. S
      SubbuI
      Dec 8, 2016 at 1:07 pm
      OUR LEGALLY AUNTHANTIC ECNOMIC LIZARD SIDE KICK JAAT LEY SHOULD EXPLAI IN PLAIN TERMS HOW MUCH SLASH MONEY EXCHANGED PRIOR TO NOTE BAN BY DICTATOR NMODI BY GANGSTER AMIT SHAH AND HIM SELF IF HE HAS MARBELS IN PLACE
      Reply
      1. A
        ashok dayal
        Dec 8, 2016 at 2:58 pm
        It should be any amount as cash transaction is normally done for higher amounts only.lt;br/gt;This called putting cart before horse.
        Reply
        1. A
          ashok dayal
          Dec 8, 2016 at 3:00 pm
          There should be no service tax if paid by cheque/Card.lt;br/gt;Service tax should be levied for cash transaction
          Reply
          1. D
            Dash
            Dec 8, 2016 at 7:38 am
            why upto 2000 only?there shlould be no servjce tax on such transactions.
            Reply
            1. D
              Dimpi
              Dec 20, 2016 at 5:09 am
              yesterday I bought pizza form dominos and i had paid by debit card the amount was 490 ...and they charged me SERVICE TAX @ 6%.... Why???Even though I asked them...but they dont have any idea about this... Isss it Implemented or not ??????
              Reply
              1. F
                Feku
                Dec 8, 2016 at 12:23 pm
                Every sort of tax from swacch bharat tax to other tax has evaporated into thin air without results on the ground.
                Reply
                1. F
                  Feku
                  Dec 8, 2016 at 12:32 pm
                  Modi renames Congress schemeslt;br/gt;------------------------------------------------------lt;br/gt;1. National Manufacturing policy of 2011-Renamed to Make in India.lt;br/gt;lt;br/gt;2. Nirmal Bharat - Renamed to Swatch Bharatlt;br/gt;lt;br/gt;3. Direct Benefit Transfer - Renamed Jan Dhan Yojnalt;br/gt;lt;br/gt;4. National Pension Scheme - Renamed Atal Pension Yojanalt;br/gt;lt;br/gt;5. National e-Governance Plan (NeGP) - Renamed Digital India lt;br/gt;lt;br/gt;6. Aam Aadmi Beema Yojana (AABY), - Renamed Pradhan Mantri Suraksha Beema Yojanalt;br/gt;lt;br/gt;7. IAY – Indira Awaas Yojna to GRAM - Renamed National Gram Awaas Missionlt;br/gt;lt;br/gt;8. Planning Commission - Renamed Niti Ayyoglt;br/gt;lt;br/gt;9. Rajiv hi Gramin Vidyutikaran Pariyojna - Renamed Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGY).lt;br/gt;lt;br/gt;10. Accelerated Irrigation Benefits Programme (AIBP) - Renamed as Pradhan Mantri Krishi Sinchai Yojana (PMKSY)lt;br/gt;lt;br/gt;11. Modi said the current government took a strategic decision to begin production of neem-coated urea to boost the falling fertility of India’s over-fertilised agricultural lands.lt;br/gt;Reality: Parliamentary data reveal that urea, along with various pesticides, has been coated with neem for 11 years.lt;br/gt;lt;br/gt;12. Modi has implied that issuing “soil-health cards” is an original idea of the National Democratic Alliance (NDA) government.lt;br/gt;Reality: More than 50 million soil-health cards had been issued to farmers across states and union territories by March 2012.lt;br/gt;lt;br/gt;13. Modi claim Farm credit target raised to Rs 8.5 lakh crore. This was a key achievement during 2014-15.lt;br/gt;Reality: An examination of government data since 2010-11 reveals that farm-credit targets are raised by at least Rs 1 lakh crore every year. The target for 2014-15 was fixed at Rs 8 lakh crore.lt;br/gt;lt;br/gt;14. Modi Launched Paramparagat Krishi Vikas Yojna (PKVY), Traditional Agriculture Growth Programme, to promote organic farming; every farmer to get Rs 20,000 per acre every three years.lt;br/gt;Reality: PKVY is, again, an example of change in nomenclature; it clubs existing organic-farming schemes/programmes.
                  Reply
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