Saturday, December 10, 2016

Increase the limit for Service Tax Exemption to Rs. 10,000 and Incentivize RTGS and NEFT transfers: PHD Chamber

While appreciating the government for accepting PHD Chamber’s suggestions on the removal of costs for digital transactions, Mr. Gopal Jiwarajka, President, PHD Chamber of Commerce and Industry has further suggested to incentivize RTGS (Real Time Gross Settlement) and NEFT (National Electronic Funds Transfer) under the ambit of digital transfers so that more and more people adopt the available facility and are less dependent on cash transactions.

Provisions of digital transactions in central government petroleum PSUs, primary cooperative societies/milk societies/agricultural input dealers, railways and public sector insurance companies are encouraging, said Mr. Jiwarajka.

Removal of service tax charged while making payments through credit card, debit card, charge card or any other payment card up to Rs.2,000 in a single transaction is a good start for the transformation from cash transactions to the digital transfers, however, the limit needs to be revised to Rs.10,000, he said.

A threshold limit of Rs.2,00,000 for transactions under the RTGS and Rs.50,000 for transfers under NEFT should be exempted from the service tax, said Mr. Gopal Jiwarajka.

Daily cash withdrawal limit from ATMs should also be increased to Rs.10,000 so that people are not coming in queue again and again, he said.

We suggest facility for withdrawal of new currency denominations through mobile ATM’s in the government, public sector and private corporate sector offices having more than 25 employees in their establishments, he added

Cash driven sectors such as construction sector and Small and Micro Units (SMEs) should be facilitated by expanded cash limits to withdraw from the banking sector for the payment of salaries of their daily wage and contractual workers, he said


We believe faster implementation of the suggested measures would help the people to contribute more in the process of demonetization to remonetization, said Mr. Gopal Jiwarajka.

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