Service charge

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Kewal Sharma (Querist)
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19 June 2013 DEAR SIR

WHAT IS THE DIFFERENCE BETWEEN SERVICE TAX AND SERVICE CHARGES AND WHAT RATES SHOULD BE APPLIED AS SERVICE CHARGES.

Ganeshbabu K

Ganeshbabu K (Expert)
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19 June 2013 1)service charge: is nothing but his fee/charges for performing service.here person who charges it is income to him he will not deposit this amount to government.rate is determined by service provider only.

2)service tax : is tax on taxable services which is specified in finance act as per rates prescribed which is currently(12.36%).here person who charges service tax collects service tax from service receiver and the same will be deposited to government..

Thanks & regards
Ganesh babu k

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