Eating, travelling to pinch your pocket: Know what will cost you more from June 1

New Delhi, May 20: Start saving money now as you will have to pay more to avail some useful services from next month.

Know what will cost you more from June 1

Reportedly, new service tax which was announced in the budget 2015-16 by Finance Minister Arun Jaitley will come into effect from June 1.

Here is all you should know about it

  • The government has announced that from June 1 new tax of 14 per cent will be effective
  • Currently the service tax is levied at the rate 12.36%, including education cess. 
  • This was announced by the government in the Union Budget but couldn't be implemented from April 1.
  • In his Budget speech, Jaitley had said that to facilitate a smooth transition to levy of tax on services by both the Centre and the States, "it is proposed to increase the present rate".

What will be costly now?

  • One will have to pay more money as tax will be levied on all services, expect a small negative list.
  • Using cabs and eating in restaurants will put extra burden on your pocket. 
  • Similarly, with the new service tax paying credit card bill, insurance policy and air travel will also become costly.
  • Reportedly, service tax will be increased from 0.6 per cent to 0.7 per cent for domestic flight.
  • This will be even more (from 1.2 to 1.4 per cent) for international flight.
  • On insurance front, for first year of the policy service tax will become 3.5 from 3 per cent.
  • Apart from these, advertising, services of architect, certain type of constructions, event management, and tour operator are some of the other important services which will pinch your pocket.

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