Service tax will be 15% from tomorrow
Consumers will now have to deal with out an additional 0.5% for various services, taking the total service tax to 15% service tax will be 15% from tomorrow. In previous budget the total service tax was raised to 14 per cent from 12.36 per cent.
Budget announcement
Services like your internet and phone connection, restaurant bills, train and air travel, insurance, will attract the Krishi Kalyan Cess that was announced in the Union budget this year. KKC is aimed at improving agriculture in the country and for financing schemes in the sector.
The government is finding new ways of taxing people. Already the cost of many essentials has gone up and from now there is an additional service tax for almost every service. Last week, my insurance company sent an SMS saying a KCC cess of 0.625 per cent will be levied on premium renewals from now on. Add to that phone bills, internet bills, etc. Almost all bills are going to become more expensive, Mrs. Girija, a retired government official said.
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