Has your restaurant levied a 14 percent service tax on your food bill today?

Sonal Desai
New Update
service tax

MUMBAI, INDIA: Well, if it has, the restauranteur is right!!!


The 14 percent service tax, announced by the finance ministry during the budget speech has been introduced. Finance minister Arun Jaitley had announced the hike in the service tax from 12.36 percent to 14 percent in his Budget speech for FY2015-16.

What does this mean?

The tax makes eating out in restaurants, insurance and phone bills expensive.

The hike in service charge is likely to affect common people as tax is levied on railways, airlines, banking, insurance, advertising, architecture, construction, credit cards, event management and tour operators.

The service tax-GST connect

Jaitley had in his Budget speech said that the raise is aimed at facilitating smooth transition to the Goods and Service Tax (GST) system.

"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 per cent to a consolidated rate of 14 per cent," Jaitley had said in the Budget speech.