The new service tax rate of 14% will come into effect from 1 June, in a move that will make eating out in restaurants, insurance and phone bills expensive, among many other things.
The service tax is currently levied at the rate 12.36% including education cess. The new rate of 14% announced by finance minister Arun Jaitley in his budget for 2015-16 would come into effect from 1 June.
Service tax is levied on all services, expect a small negative list. Advertising, air travel, services of architect, certain type of constructions, credit card, even management, and tour operator are some of the important services, which attract tax.
The service tax is currently levied at the rate 12.36% including education cess. The new rate of 14% announced by finance minister Arun Jaitley in his budget for 2015-16 would come into effect from 1 June.
Service tax is levied on all services, expect a small negative list. Advertising, air travel, services of architect, certain type of constructions, credit card, even management, and tour operator are some of the important services, which attract tax.