Service tax waived off on debit and credit transactions of up to Rs 2,000

Boosting Prime Minister Narendra Modi’s aim to go from less cash economy to cash-less economy, the government on Thursday decided to waive off service tax in debit and credit card transaction of up to Rs 2000.  

Also, the service tax notification of June 2012 will be amended to include exemption on credit and debit cards, the sources added. A notification to this effect will be tabled by Finance Minister Arun Jaitley in Parliament.

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

#ServiceTax to be waived on debit and credit transactions of up to Rs 2,000 to promote #CashlessPayment.

— Press Trust of India (@PTI_News) December 8, 2016

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

Earlier, in the week, Finance Ministry had issued directives to all ministries and government departments to make e-payments to suppliers, contractors, grantee and for other purposes.  The finance ministry had also instructed PSU and private banks to do away the transaction cost for all payments via debit cards, the road transport ministry had asked vehicle manufacturers to provide a digital tag on all new cars for e-payments at toll plazas and checkposts.

(With inputs from agencies)