NEW DELHI: The Union Budget 2015-16 proposed by Union Finance Minister Arun Jaitley earlier this year recommended the hike of service tax (from 12.36 percent to 14 percent) that would take effect from June 1, 2015. People will now have to release their pockets a little more on different things now as the service tax is escalated up to 14 percent from Monday.
While some of the key things that would be affected by the increased service tax include travelling and eating out, let’s take a look nine important things of your daily life that would cost you more than earlier.
Be prepared for your increased mobile bills as it would see the new service tax attached to it. The more is your bill, the more would be the service tax added to it. Well, with such a scenario, it is better that you either keep a control your mobile phone conversations, or else switch to a cheaper plan suiting your pocket.
The cab bills too will see big digits in it reflected by the higher service tax from today.
It’s time to tame your hunger pangs and have a control on your tasteful cravings as dining out would now cost you more than what it did earlier. The increased service tax is expected to increase your restaurant bills.
Fares for First Class and AC classes in the passenger trains, apart from the freight charges would go up by 0.5 percent from Monday. A service charge of 3.7 percent was levied until now on the train fares for AC Class, First Class and freight, however, it would go up by 4.2 percent from today.
The air travel as well is to be affected by the increased service tax. While the domestic flight would see an increase from 0.6 percent to 0.7 percent, the international flights would be affected more with a rise of service tax from 1.2 percent to 1.4 percent.
Well, you need to shell out an extra amount now to beautify yourself as the salon services as well see an increased service charge applied to the actual bill. Self pampering needs to be reworked with natural home remedies guys!
The DTH package you have chosen to keep yourself engaged at house or work will also need your re-consideration now due to the increased prices. The package fee will now be increased due to the change in service tax policy following the Union Budget 2015-16 which goes effective from today.
Insurance/Credit Cards Bill
With the increased service tax, the credit card bills and insurance policies too would cost a common man more than it did as of now. The life insurance premiums were currently attracting a service tax at 3 percent in the first year and 1.5 percent premium in the following year. On the other hand, the service tax plans for traditional life insurance plans would be increased from 3 to 3.5 percent for the first year premiums and 1.5 to 1.75 percent for the succeeding year.
In the same way, other insurance products such as general insurance and unit linked insurance plans; the service tax applied will increase from 12.36 per cent to 14 per cent.
Well, if you often send parcels to your loved ones or professional couriers, here as well you will be spending more with an increased service tax levied. Depending upon the actual price of your product, the amount would be hiked with the added service tax.