Telephone bills, airline tickets, eating out become expensive

. Service Tax Hiked from 1st June and things like your telephone bills, restaurant bills, airline tickets become costlier. As from 1st june, the Krishi Kalyan Cess increased by (0.5 per cent), now the tax on all chargeable services would be increased from 14.5 per cent to 15 per cent. The proceeds from the cess will be exclusively used for financing initiatives relating to improvement of agriculture and welfare of farmers, Finance Minister Arun Jaitley had said. Increased in service Tax would become a burden of Rs. 20,600 crore on consumers in the coming financial year. On bill of Rs.1000, if u r paying Rs.145 as service tax, now you have to pay Rs.150. KKC would not be apply on the bills that are generated or paid before 1st June. Bills that are generated before 1st June, but have to pay from 1st June, KKC will be apply.