New service tax of 14% to be levied from Today

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New Delhi, June 01: Making eating out in restaurants, insurance and phone usage expensive, among many other things, the new service tax rate of 14 per cent comes into effect from today.People will have to shell out more money for these services now.

The service tax is currently levied at the rate of 12.36 per cent including education. The new rate of 14 per cent was announced by Finance Minister Arun Jaitley in his Budget for financial year 2015-16.

Service tax is levied on all services except a small negative list. Some of the key services that will attract higher tax and hence become costlier are: railways, airlines, banking, insurance, advertising, architecture, construction, credit cards, event management and tour operators.

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