NDA Government on
Thursday Dec 08,2016 exempted card payments up to Rs 2,000 from service tax in its
efforts to make a less cash economy a reality. Payments made using both
debit and credit cards have been given the relaxation in rules.
Currently, 15% service tax is applicable on these card transactions.
The move is likely to be hailed by general public at large as it will bring some respite to the cash-starved populace queuing up hours outside banks and teller machine kiosks.
The ban on Rs 1,000 and Rs 500 currency notes has rendered people with less or no cash in hand thus leading to demands for more cash of legal tender in the system which the government has so far failed to supply with.
The exemption on the card payments would enable people to switch to the 'alternative' mode of payments at cash-intensive outlets like those done at hotels, retail shops, buying for household stuffs.
The move is likely to be hailed by general public at large as it will bring some respite to the cash-starved populace queuing up hours outside banks and teller machine kiosks.
The ban on Rs 1,000 and Rs 500 currency notes has rendered people with less or no cash in hand thus leading to demands for more cash of legal tender in the system which the government has so far failed to supply with.
The exemption on the card payments would enable people to switch to the 'alternative' mode of payments at cash-intensive outlets like those done at hotels, retail shops, buying for household stuffs.
No comments:
Post a Comment