Just a flash of the Union Budget 2016 in a common man view:
Finance Minister Arun Jaitley did not raise service tax in a big relief to taxpayers, but he announced a “Krishi Kalyan” cess of 0.5 per cent, which be levied on all services.
As a result, the total service tax paid, including the new cess announced today, will rise to 15 per cent. Eating out in restaurants, buying property and insurance, and making mobile phone calls will therefore become more expensive from June 1, 2016.
Advertising, air travel, services of architects, certain type of constructions, credit cards and event management are some of the services which attract this cess. The “Krishi Kalyan” cess will also be negative for the telecom and services industries, which includes hotels and real estate.
Rs. 1,060 crore revenue loss through direct tax proposals.
13 different cesses levied by various ministries with collections less than Rs.50 crore a year to be done away with.
4% high capacity tax for SUVs.
No changes have been made to existing income tax slabs.