Service tax up from today

New Delhi, May 31: People will have to shell out more from Monday while using mobiles, eating out and travelling as the service tax rate goes up to 14%. Fince minister Arun Jaitley in his budget had proposed to raise service tax from 12.36% (including education cess) to 14%. The proposal takes effect from June 1.  The tax is levied on all services, expect a small negative list. Some of the key services that will attract higher tax and hence become costlier are: railways, airlines, banking, insurance, advertising, architecture, construction, credit cards, event magement and tour operators. IANS