New Delhi, May 20 (KNN) Effective from June 1, the rate of service tax will be increased to 14 per cent from the existing 12 per cent.

 In the Union Budget, 2015, an increase in the rate of Service Tax from 12% to 14% had been proposed from a date to be notified, Finance Ministry today said in a release.

The Finance Bill, 2015 has since been enacted and the Central Government has notified 1st June, 2015 as the date from which the rate of 14 per cent would become applicable, the release added.

 The provisions levying Education Cess and Secondary and Higher Education Cess would also cease to have effect from same date i.e. 1st June, 2015, as the same would be subsumed in the service tax rate of 14 per cent, it said.

Certain other changes have also been notified with effect from 1st June, 2015. However, the date of giving effect to the provisions relating to imposition of a Swachh Bharat cess on all or any taxable service will be done in due course. 

With the notification, several services including cable and DTH services, beauty parlour charges, courier service, laundry services, ordering stock broking, asset management and insurance will become expensive.(KNN Bureau)