The service tax hike as recommended in the Union Budget 2015-16 would take effect from June 1, 2015. Here are a few things that would get more expensive from today.

Dining at a restaurant would be expensive from June 1 as service tax rate would now be 14 per cent as against 12.36 per cent currently. This is likely to increase your restaurant bill.

Mobile Bills

Mobile Bills would also see the new service tax reflecting an increase in the bills. Higher your bills, higher is the tax that you would end-up paying. You might want to switch to a cheaper plan to compensate the loss.

Air Travel

Travelling by air would also become expensive due to the addition of the 14 per cent service tax.

Hiring Cabs

Your cab bills would now also reflect the higher service tax from June 1, 2015.

Other areas where service tax would be applicable and get expensive include:

1) DTH Services

2) Beauty Parlour

3) Insurance

4) Stock Broking Related Services

5) Courier Services

6) Laundry services etc.

7) Railway Tickets etc.

In the Union Budget Arun Jaitley had said: "To facilitate a smooth transition to levy of tax on services by both the Centre and the states, the service tax rate is being increased from 12 per cent plus education cesses to 14 per cent."

On many services the service tax was already being levied from March 1, 2015 as the establishments did not know that the provision had not been notified.

The Finance Bill, 2015 has since been enacted and the Central Government has notified 1st June, 2015 as the date from which the rate of 14% would become applicable. The provisions levying Education Cess and Secondary and Higher Education Cess would also cease to have effect from same date i.e. 1st June, 2015, as the same would be subsumed in the service tax rate of 14%. Certain other changes have also been notified with effect from 1st June, 2015.

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