With coming Wednesday, eating out is getting more costlier as one has to pay more for eating out and travelling.
The 0.5 per cent Krishi Kalyan Cess announced in the Union Budget on “all taxable services” will come into effect from 1st June.
Last year, the Modi government had imposed a 0.5 per cent Swachchh Bharat cess on service tax to fund Prime Minister’s pet project, the Swachh Bharat Abhiyan.
And, yet in a year the government has increased service tax from 12.36 per cent to 15 per cent (including the two cesses).
Last month the parliamentary committee on finance had expressed its displeasure over the fact that the money collected by way of cess was not being utilised for the designated purpose.
Other services which are affected by the tax is air or rail travel, buying and renewing insurance, watching films at cinema halls and TV through DTH amongst others.