Service tax

monish (Querist) 04 July 2014 This query is : Resolved
Sir,

Whether service tax would be applicable on Cheque dishonored charges recovered from the customer under following circumstances

1)When only actual amount of charges are recovered(Cost-to-cost reimbursement)
2)When Higher amount is recovered from the customer(e.g.Rs.50 are charged by bank but Rs.150 are recovered from the customer)

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T. Kalaiselvan, Advocate (Expert) 06 July 2014
The above charges depend from bank to bank as well as it depends on private sector and public sector banks where they maintain certain norms on the subject issue as per their own convention to a certain reasonable limit.

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