I have used your code and it’s working. Probably you have not registered your AjaxControlToolkit properly.
Register it like this.
<%@ Register TagPrefix="cc1" Namespace="AjaxControlToolkit" Assembly="AjaxControlToolkit" %>
Check intelligence is coming or not when you start typing
<cc1:
Or you can use Placeholder like this instead of using Water Mark Extender
Like this.
<asp:TextBox ID="txtName" runat="server" placeholder="Enter Your Name"/>
With PlaceHolder and WaterMarkExtender
<asp:TextBox ID="TextBox1" runat="server" AutoPostBack="true" OnTextChanged="Charges_click"></asp:TextBox>
<cc1:TextBoxWatermarkExtender ID="TextBox1_TextBoxWatermarkExtender" runat="server"
Enabled="True" WatermarkCssClass="watermarked" TargetControlID="TextBox1" WatermarkText="Charges per day">
</cc1:TextBoxWatermarkExtender>
<asp:TextBox ID="TextBox2" runat="server"></asp:TextBox>
<cc1:TextBoxWatermarkExtender ID="TextBox2_TextBoxWatermarkExtender" WatermarkText="TDS"
WatermarkCssClass="watermarked" runat="server" Enabled="True" TargetControlID="TextBox2">
</cc1:TextBoxWatermarkExtender>
<asp:TextBox ID="TextBox3" runat="server"></asp:TextBox>
<cc1:TextBoxWatermarkExtender ID="TextBox3_TextBoxWatermarkExtender" runat="server"
WatermarkCssClass="watermarked" WatermarkText="Service tax" Enabled="True" TargetControlID="TextBox3">
</cc1:TextBoxWatermarkExtender>
<asp:TextBox ID="txtName" runat="server" placeholder="Enter Your Name"/>
Screenshot
