Go cashless without fear: No service tax on debit and credit card for upto Rs 2,000

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In order to promote and motivate citizens to make a cashless society government today announce that from today you won’t be charged any sort of service tax on your debit and credit card for upto Rs 2,000.

As per the sources, “Government has decided to exempt services by an acquiring bank to any person in relation to the settlement of an amount up to Rs 2,000 in a single transaction transacted trough credit, debit card or other payment card service”.

While addressing the public Prime Minister Narendra Modi in “Mann ki Baat” ask people to support to make India a “cashless society”.

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

If reports are to be believed, Government has asked banks to introduce extra 10 lakh PoS terminals by March 31 in various parts of the nation.

This move has come up after Prime Minister Narendra Modi has discounted Rs1,000 and Rs 500 Notes on November 8.

After the old currency was banned by the government, citizens were facing lots of problem due to the cash crunch. Seeing this sort of circumstance government has reported this arrangement.

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