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No Service tax on Debit Card or Credit Card Transactions Up to Rs 2000

Good news for Credit Card and Debit card users. To make the country use cashless economy and boost digital transactions, Government of India today announced that it wouldn’t charge any service tax on credit or debit card transactions up to Rs 2,000.

Currently, we pay 15% as the tax on card transactions, and now you won’t pay service tax for up to Rs 2,000. The government is taking necessary steps over Cashless transactions, and the Government’s latest initiative of exemption of service tax on credit or debit card for up to Rs 2,000 is to boost the country for using digital operations.

The tax break for using cards come exactly a month after Prime Minister Narendra Modi announced the statement of demonetization of currency. He announced the ban of Rs 500 and 1000 notes on November 8.

Rs 10 for Digital Transactions: Government is Looking to Provide Inducements to Boost Cashless Digital Payments

Yesterday, the Reserve Bank of India (RBI) clarified that already 11.5 lakh crores ($170 billion) had come to banks through depositing. Central Government is going to modify the June 2012 service tax notification and finance minister Arun Jaitley will submit the information to Parliament.

RBI Monetary Policy Committee had taken this initiative to reduce cash crunch. However, critics of the demonetization drive say this shows that the modification has failed at cracking down on black money.

The ban of the high-denomination notes set off a huge cash crux. The withdrawn bills formed 86 percent of the currency in circulation. The situation was worsened by a lack of new bills through the Government has relieved that conditions will improve by the end of the year. Cash in the banks disappeared within few hours of opening and remain packed with people desperate for currency.

Visa, MasterCard and Rupay Launches QR Code Payment System for Making Cashless Transactions in India

Yesterday, the RBI unexpectedly didn’t lower its key policy rate. India’s economy grew by an annual 7.3 percent between July and September. RBI on Wednesday proposed a new set of guidelines for those who are doing online transactions. From now onwards, transactions up to Rs 2,000 won’t allow OTP and also announced that it would take some time to take new Rs 500 notes in the market.

IRCTC said No need to pay Online Ticket Booking fees Till 31st December

Now onwards no need to pay online ticket booking fees for IRCTC, it is valid up to December 31st. This step has taken to increase the online transactions. We all know about demonetization of Rs 500 and 1000 notes, so at present we don’t have the sufficient cash flow to fulfill our needs. So many people for going for online transactions

IRCTC account holders book their E tickets, and I tickets on online, up to now they are charging Rs 20 for e-ticket for sleeper class and Rs 80 for I-ticket, For AC class Rs 40 for E-ticket and Rs 120 for I-ticket.

This will effect from 23rd November to December 31st. The government is planning to remove the online taxes, some discussions are going around on this issue, and soon they will inform the details.

A senior official from Railways said we had suggested IRCTC to completely waive off the service tax or reduce the tax on the orders of prime minister. Modi mission is online transactions should be not expensive than counter payment transactions.

But by this step, IRCTC will lose a lot. Every year IRCTC gets 33% revenue from service tax only, the annual income of them is 1500 crores, in that 540 crores are earning by the service tax only.

But at present government prefers to encourage cashless transactions. So the government is trying to provide benefits on online transactions. After December 31st they seek to reduce the online ticket booking fee to support online transactions.

IRCTC ensures the proper cash flow in the nation under the impact of Demonetization

  • Banks waive off all charges on usage of debit card till December 31st 2016
  • Railways waive off all service charges on online bookings till December 31st 2016
  • Rs 21,000 crores will be released by NABARD bank to help farmers in this Rabi season
  • USSD charges of Rs 1.50 to be exempted on all financial transactions made on mobile feature
  • All payments to be pay on online by govt organizations

For More News Update: Techfactslive

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