No Service Tax on transactions up to 2000 in a single transaction through Debit and Credit cards is reportedly sealed by the Government. It was reported that Government is planning to introduce the No Service Tax formula and amend the law of 2012.
As per the latest reports government has decided to go ahead with the decision to promote the cash less or less cash economy. So far, there used to be normal service tax for any online transaction but Government has prompted this decision after the demonetization drive of November 8.
In other directions, Government has also directed the banks to install 10 Lakhs POS or Point of Sale devices to different parts of the country to start with. This would further reduce the stress on cash crunch believes the sources from the Government.
The latest decision to waive off the tax from the online transaction up to 2000 can make a huge difference. There are many places where the smaller transactions are not accepted online because of the service taxes but now the path will be eased out. As per the sources more, steps and concrete formulas may come to promote Indian economy as a less cash economy if not a cash less economy.
Even though many economists have been critical of the decision but the Narendra Modi Government is no mood to go backward and is trying everything to make the transactions transparent. This can be a milestone achievement if the online transactions are established thoroughly even in the rural parts of the country. The urban areas are already using the debit or credit cards but the challenges are mainly faced by the villagers and the people of the B grade cities.
No Service Tax on transactions up to 2000 can prompt good reaction.
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