Union Government’s ‘Swachh Bharat cess’ has turned out to be extra burden for Consumers since the service tax has gone up to 14.5 from 14%, on all taxable goods. This new rule has come into effect from 16th November.
So, after this new effect, service tax on restaurant bills will rise to 5.8% from 5.6 due to the 0.5% Swachh Bharat cess. Coming to AC restaurants, Service Tax would be 14.5% of the already existing 40% of the total billed amount.
As per reports, Central Government is hopeful of pocketing around Rs 10,000 Crore a year by implementing Swachh Bharat cess. The revenue could be around Rs 4,000 crore for the current fiscal of the Financial Year.
An extra Rs 0.50 will be levied on every Rs 100, from now onwards. Already, Consumers might have expressed this new implementation. Union govt is planning to conduct an awareness programme to let people know about the increased tax, which will go to Prime Minister Narendra Modi initiated ‘Swachh Bharat’ scheme.
