Mobile Calls Get Costly From Today As Service Tax Goes Up

Mobile calls in India have got costlier from today – Monday June 1, 2015. The reason for the cost to go up is the increase in service tax. So now, get ready for shelling out more money for the calls you make from your mobiles.

Mobile Calls To Get Costlier

People in India will have to count more bucks for making mobile calls. Apart from that the increased costs are also applicable for restaurants and travelling as the service tax has been increased to 14%.

These changes were proposed by the Union Finance Minister Mr. Arun Jaitley. The implementation has come in force from today. The service tax has seen a jump of 1.64%. The earlier tax percentage was 12.36%, which has now gone up to 14%.

The tax is mostly levied on all the services, but for a miniature negative list.

As stated above, it is not only the mobile calls that will get costlier. There are other walks of life too that will get affected, which are, banking, railways, advertising, airlines, credit cards, construction, tour operators and event management.

As of now, there is 3.7% service tax on various train fares like AC Class, First Class as well as on freight. This has been increased by 0.5%, which means the new tax rate now will be 4.2%.

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Mobile Operators Sending Out Messages

Most of the mobile operators had already started sending out messages in the form of SMS to allow their customers to know about the increase in the cost of mobile calls. The message included the information about the increase in service tax, which will be levied directly on the customers.

The decision to increase the service tax to 14% had already been proposed by the Finance Minster. It was intended for a soft transition to (Goods and Services Tax) regime. This is to the run up to the roll out that is supposed to commence from April next year.

Education cess is levied the service tax. The EC will be included in the service tax rate only. This takes effect from today.

Swachh Bharat Cess

The Swachh Bharat initiative launched by the Modi Government in India is taking shape. It is a unique program by Mr. Narendra Modi in an effort to make the Motherland a cleaner place to live. The plan was launched last year by Mr. Modi himself.

Taking the initiative on a greater scale, apart from the increased costs in mobile calls, the finance ministry in the budget had also proposed a cess of 2% for the Swachh Bharat program.

However, there is still no official word on the cess. As a matter of fact, the Swachh Bharat cess would be levied on only a handful of select services. The government has not come on any notification regarding the issue.

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