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  • I received a letter from TECHPRO INSTANT PAY™ regarding a 10.30% Service Charge. What is this?

    The Union Budget 2008-2009 is levying a service tax of 10.30% (inclusive of Education Cess) on credit card companies. Due to this, TechProcess will charge a service tax of 10.30% on the Setup Fee, Annual Maintenace Fees and TDR.

    The service tax thus collected will be deposited to the government. We will include this amount on the payout statements and invoices issued to the merchant. 

  • How will the tax amount be calculated?

    The service tax is 10.30% of the applicable TDR.

    For example: If the transaction amount is Rs 100.00 and TDR is 7%, the service tax would be levied on Rs. 7.00 at the rate of 10.30%, which amounts to 73 paise.  The rates will be subject to change as per Government Rules.

  • How are you going to collect the service tax from me?

    We will deduct the service tax from your payouts due. 

  • Why are you charging this to me and not absorbing it yourself?

    This tax has been levied by the Government of India. As part of our services, TECHPRO INSTANT PAY™ will be deducting the charge from the amount payable to the merchant and depositing it with the Government. 

  • How will I get to know about the amount deducted?

    The amount of service tax levied will be conveyed to you as a part of the periodic statements/invoices issued. 

  • Is the amount deducted on each transaction or on a lump sum?

    The service tax is to be charged on every transaction. 

  • Can I levy this service tax on to my customer?

    The applicability of this particular tax relates to the transaction between card processing companies and merchants like you. Please consult your tax advisors to know how the law will impact pricing to the end customer.