But you can't do it; can you?
CPM Leader Mr. Sitaram Yechury is reported to have objected to this move of the Government to waive the service tax on card transactions. Yechury's objections are:
1. No taxation proposal can be implemented, except being approved by Parliament.
2. It is a clear violation of parliamentary norms and procedures....
3. No tax proposal can be made anywhere else but in Parliament.
4. All matters relating to withdrawal from or accrual to the Consolidated Fund of India.... cannot be carried out without Parliament's nod.
5. In this case, the Consolidated Fund will receive less on account of service tax waiver because of the Prime Minister's approval to it. This cannot be done.
Yechury's party colleague Mr. Salim said "service tax was passed by Parliament as part of the budget proposal. So if any changes have to be made in it, it has to be made in Parliament."
Yechury saab and Salim Saab, the waiver of service tax was done by a notification issued under Section 93 of the Finance Act 1994 which stipulates, "If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by notification in the Official Gazette, exempt generally or subject to such conditions as may be specified in the notification, taxable service of any specified description from the whole or any part of the service tax leviable thereon."
So, as per this Act passed by Parliament, the Government is under no obligation to take Parliament's approval for giving the exemption by notification. All that the government is obliged to do is to lay a copy of the Notification in Parliament, which the Government has done promptly yesterday itself.
Misleading information: A Netizen mailed me this morning:
Yesterday and today almost all print media and TV have reported that there will be no service tax for payment upto Rs. 2000 if paid by card. Some have even quantified the savings as up to Rs. 300.
Actual notification (52/2016) exempts the ST on bank charges!!!
In days to come, small service providers like restaurants, lodges and like are going to face trouble because of this confusion.
I request, if thought fit, please cover this issue in DDT.