New service tax rate of 14% to come into effect from June 1

The new service tax rate of 14% will come into effect from June 1, government today said, in a move that will make eating out in restaurants, insurance and phone bills expensive, among many other things.

The service tax is currently levied at the rate 12.36% including education cess.

Top official sources said that the new rate of 14% announced by Finance Minister Arun Jaitley in his Budget for 2015-16 would come into effect from June 1.