It’s time take control of your spending or else, you will end up shelling out more of your earnings towards mobile and internet bills. Govt has revised the service tax from original 12.36 percent to 14 percent, that in-turn will raise the mobile and internet rates. The new service tax has already came into effect from 1st June 2015. Telecom operators and banks have started sending out messages to its customers conveying the increase in service tax rate.

Mobile & Internet bills become Costlier as Govt raises Service Tax to 14%

Service tax raise from 12.36 percent (including education cess) to 14 percent was proposed by Finance Minister Arun Jaitley in his Budget 2015. “To facilitate a smooth transition to levy of tax on services by both the Centre and the States, it is proposed to increase the present rate of service tax plus education cesses from 12.36 percent to a consolidated rate of 14 percent,” he had said during his Budget speech. This raise will facilitate a smooth transition to the Goods and Services Tax (GST) that will supplement service tax, excise and other local tax levies.

The increased service tax being levied not only on telecom sector, but on all services, expect a small negative list. You will now end up paying more for your railway tickets, airline tickets, banking services, construction, credit cards, tourism, advertising and more.

What will you end up paying? as an example, Tata Docomo Photon 3G postpaid customer who used to pay Rs 650 + 12.36 % service tax or a total of Rs 730.34 for one month data usage, will now end up paying Rs 741 per month or Rs 650 + 14% service tax.

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