Govt waives service tax on card transactions of up to Rs 2000

New Delhi, Dec 8 (KNN) In order to ease the burden of service tax on small transactions made through cards, the government today waived service tax on debit and credit card transactions of up to Rs 2000.

The move aims towards making India a cashless society.

Urging farmers and traders to start using digital modes of payment, the Prime Minister in his Mann ki Baat last month had said that such efforts will transform the country. "Your mobile is your wallet," the Prime Minister had said and asked his "farmer brothers" to take the benefits of online banking.

There has been massive increase in digital payments usage via POS (point-to-sale) payment post demonetisation exercise on November 8.