Service Tax Dispute during credit Card Swipe

POSTED BY Karthikraja ON September 20, 2013 8:00 pm COMMENTS (3)

Hi, I recently swiped my Citibank credit card at non citi based EDC for fuelling my scooter. the amount which i signed is Rs 200. But credit card statement shows 212.xx. when i asked citi, they told that transaction fee Rs 10 and Service tax ( 12.36%) on Rs 10 is levied for non citi edc swipes in petrol bunks. i am signing that ” i agree to pay only Rs 200″. Now two questions

1. Why Difference in Slip amount and Credit card statement?

2. Service tax should shown as seperate record which ensures me that it goes to Government ( Ex: IRCTC ticket booking will create transaction charge, service tax and base amount). Citi may not pay to Govt because it is not mentioned in credit card statement.?

May be i am missing some basic information or i may be right in pointing out. kindly help.


Karthikraja K

3 replies on this article “Service Tax Dispute during credit Card Swipe”

  1. ashalanshu says:

    Dear Karthik, in the given case, this 10 Rs. surcharge on 200 Rs. is charged by CITI and not the merchant. So whatever CITI people are telling you is a blatant lie. As the money is charged from you under the head fee/surcharge, it’s liable to service tax & that’s why, @ 12.36% for 10 rs. you need to pay 1.23 Rs. over and above the surcharge amount of 10 Rs.



  2. Karthikraja says:

    Dear Ashal,
    CITI is not telling me that they just pay 212.xx to the merchant. so Citi does not know how the heads are. when i asked the evidence they are telling that there are crores of transactions everyday, they dont even know where will be the evidence.

  3. ashalanshu says:

    Dear Karthikraja, your observations are correct. Service Tax is liable on 10 Rs. and it should be marked as a separate head. Please asked a detailed explaination from CITI.



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