Government To Waive Service Tax On Debit, Credit Card Transactions Of Up To Rs 2,000
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. Sources said 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 through credit, debit card or other payment card service. Sources added that the service tax notification of June 2012 will be amended to include exemption on credit and debit cards. 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.