The service tax which was 12.36% has been increased to 14% in the current budget 2015-16. There has been a lot of debate in the news on this issue. Service Tax is an indirect direct which is born by the consumer. Whenever you avail a service then you will have to pay this tax. This is a tax that you would have to bear and have to pay on the already taxed income. Please read the last part of this article which will surprise you.
Impact of increased service tax (12.26% to 14%) in India
This increase in tax would definitely shell out some money from your pocket. These are the common thing that would cost more because on this increase
- The mobile phone bill :- Almost everybody have mobile these days and now you either have to pay more money for the same service or will have to talk a bit less to compensate
- Internet Connection: – This is also common these days. So the cost of browsing or using Facebook would be a more.
- D2H or cable TV: – TV is a basic necessity and you will have to pay more money to watch your favorite TV Show or your Cricket match.
- Hotel Bill :- Hotel stay of your vacation will be costly
- Make up: – This is a bad news for the ladies the Beautician charges will cost more.
- Gym: – For the witness freak this heath cost will be a bit more.
- Restaurant :- Eating outside would be costly
- Air Fare: – Your Goa or abroad vacation would cost more.
Extra Money to be spend because of increased service tax (12.26% to 14%) in India
This chart will let you know you how much extra money you will have to pay for your spending.
|Your Spending in RS||Extra Money to be born due to increase in service tax (1.64) in Rs|
So if you are spending Rs 10 thousand per month then you have to give an extra tax of Rs 164 only. If you are heavy spend thrift and spend around Rs 50 thousand per month then you have to pay just Rs 820 extra because of this extra service charge. You will be surprised to see that the impact of this increase is not that much as projected by the News Channel.
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