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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?
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    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
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      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.
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          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
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          1. D
            Dash
            Dec 8, 2016 at 7:38 am
            why upto 2000 only?there shlould be no servjce tax on such transactions.
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