Govt To Revise Service Tax Rate From June 1, 2015, you will end up paying more for mobile and internet

Amidst of a range of brave decisions taken by NDA government during budget announcement, one that shook most was increased rate of service tax. The service tax rate has been revised from 12.36% to 14%, applicable from June 1, 2015.


It simply means that eating at restaurants, paying insurance premiums and phone bills among others will become expensive all over India from June 1 onwards. The extra financial burden that consumers have to bear can be understood with the help of a simple illustration i.e.-

A postpaid customer using 14GB plan on Reliance Pro 3 pays 700 + 12.36% (S.T) currently. The total bill amount comes up to Rs. 786.52 on monthly basis.
From now, the service tax rate will be charged at 14%, which means that the postpaid customer who is currently paying Rs. 786.52, will now end up paying Rs. 798 from June i.e. Rs. 11.48 more than the current bill amount.

Photo courtesy  : DarshanMalu

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26 Comments on "Govt To Revise Service Tax Rate From June 1, 2015, you will end up paying more for mobile and internet"


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November 19, 2015 9:50 pm 9:50 PM

what is call rate of isd call

sanjit roy
June 1, 2015 10:20 pm 10:20 PM

@Aaptards: free Wi-Fi kam milega pure delhi mein woh bhi high speed wola?? Nehi to common man next time isis ko vote karega. kyuinki isis to tax hi nehi leti . bhai log Somalia is the best country koi tax nehi koi police nehi, fulltu masti and enjoyment with swaaraj. India mein bhi Somalia jaisa swaaraj chahiye so for vote aap.

March 3, 2017 4:42 pm 4:42 PM

Tu hi Somaliya chale ja sale

June 1, 2015 7:48 pm 7:48 PM

Small marginal increase. No one will go broke paying it.