i am having credit card, if i make a transcation any service tax is charged ?, if charged what about the rates?
CA Mohit Thareja
(Assistant Manager-Accounts & Finance)
(1117 Points)
Replied 12 January 2011
the service tax is charged on the credit card services and the rate applicable is 10.3%
CA CS Akashdeep Singh
(Practicing CA)
(1394 Points)
Replied 12 January 2011
Service tax is chargeable on the various fees (like annual fee, penalty, finance charges, etc.) by credit card company. It is chargeable at rate of 10.30%.
Note: It is not chargeable on expenditure made through credit card.
CAclubindia
