New Delhi, June 8 (TruthDive) : The government has decided to bring in services that were kept out of the tax list to bring in 30% more revenue than the revised estimate of Rs 95,000 crore. Effective from July 1, the service tax has been raised from 2 to 12%. Most of the services that are to be taxed are in the unorganised sector.
The entertainment industry which has so far come under the income tax will now have to shell out service tax too. Commercial artists, performers, TV and film actors, directors and reality show judges, magic shows, mimicry, western music or dance, modern theatres, brand ambassadors and any other forms of entertainment and entertainers that bring in money will have to pay 12% service tax.
Performers of folk, classical music, dance or stage actors have been exempted. Commentators,cricket experts and those involved in IPL broadly classified as sports persons would come in the tax list since the government has not recognized this form of cricket.
From July, a visit to astrologer will be costly as you have to pay an extra 12 percent and matchmakers (matrimonial services online and offline) will charge you service tax and if your children are taking tuitions after school hours then you have to pay a service tax apart from the tuition fees.
AC rail tickets will come with a service tax and attending discourses and lectures is also taxable. Goods by rail and tourism boats will be taxable and telephone calls from hotels will be taxed.
Board directors’ fees, construction companies building more than one house or flat, rent from buildings let to government and charitable organisations, services to RBI, business arbitrators, banking services to government, non- business consultancy, satellite uplink, even building private roads or constructing a building for non-commercial purpose will come under the tax net. Courier and telephone operators who do international business are also in the net.
The entire tax is for aam admi and not for MLAs, MPs, Judges, Ministers and those holding constitutional positions and chairpersons, member or director of an entity established by the government.
Source: truthdive.com
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