Your Bill Amounts Are Going To Increase From June 1, 2016; Take A Look

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Union Finance Minister, Arun Jaitley, recommended a 0.50 per cent, Krishi Kalyan Cess on all taxable services. So, if anything has service tax, you are going to end-up paying more.

The present rate of service tax will be hiked to 15 per cent from June 1, 2016, from 14.5 per cent. Take a look at what gets expensive:

Phone Bills

Your phone bills are going to go up. This is because apart from the Swach Bharat cess, there will be another addition of 0.5 per cent, on the phone Bills for Krishi Kalyan Cess.

So, pay a good 15 per cent now on service tax on phone bills.

Pay more for dining out

If you are dining in a restaurant that already has service tax applicable, you are going to pay more on your eating out.

Though 0.5 per cent on a single bill may not mean much, if you are availing a host of services that have service tax,you may end-up paying a lot during the year.


Service tax is presently levied on a host of services, except a few that are really exempt.

So, you will have to pay more for air travel, as there is a service tax on tour operators and travel agents.

Financial services

Financial services, where there is already a service tax, like insurance would become costlier from June 1, 2016.

Many companies are already sending notices to their customers informing them of the hike.

Check for services with service tax

Even professionals charge a service tax, so if you are seeking professional advice, be prepared to pay more, due to the Krishi Kalyan cess.

How to calculate service tax?

Presently, the service tax is 14 per cent. Last year there was a Swach Bharat cess of 0.50, which was levied, which took the service tax to 14.5 per cent.

This year the Krishi Kalyan Cess of 0.50 per cent, will take the total service tax to 15 per cent.

Read more about: taxes, cess
Story first published: Friday, May 27, 2016, 8:29 [IST]
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