New Delhi, May 26 (KNN) As the increased rate of Service Tax at 14 per cent will be effective from June 1, 2015, let’s look at the Services that are likely to get dearer:

1.    Air travel will become more expensive
2.    Movie tickets and dining will become costlier now
3.    Taxi fares will go further up now
4.    Usage of phones will become costlier
5.    People will have to shell of more money at salons
6.    Insurance will become expensive now
7.    Modes of entertainment like cable/DTH will become costlier
8.    Courier service will put more pressure on the pockets now
9.    Bills will become heavier for laundry services
10.  Usage of credit cards/debit cards will attract more fee now
11.  Cost of advertising will also go up
12.  Fee for architects’ and small constructions will boom

The small and medium enterprises (SMEs) with mass consumption base would be badly hit by the increase in Service Tax Rate by 2%. The Central Board of Direct Taxes (CBDT) had said that the new service tax of 14 per cent would be applicable from June 1. The notification came after the passage of the finance Bill earlier this month. (KNN Bureau)