Centre to waive off tax for point of sales equipment
Posted on: 29/Nov/2016 5:14:24 PM
The central government has announced that tax exemption for Point of Sale equipment will soon be imposed, as a move to encourage transactions using debit or credit cards.
As Rs 500 and Rs 1000 notes are demonetized, and there is crisis for newly printed Rs 2000 notes, more people are using debit or credit card to meet their needs. For this, point of sales equipment is necessary. While this equipment is already present in large stores, even the small traders have started showing interest in using the same and have increased demand for the equipment.
Hence, as an initiative to encourage the use of debit and credit cards, the centre has waived off tax for these machines. Until 31st March 2017, this equipment will be free of 12.5 percent manufacturing excise tax and 4 percent surtax.
A detailed report in this regard as made by the central finance minister Arun Jaitley. In his report it is stated that there will be no tax of any sort including excise tax and surtax until 31st March next year.
This waiving off of tax will reduce the price of point of sales equipment by 16.5 percent, according to what the centre believes.
