The document discusses the potential impact of increasing the services tax rate in India from 12.36% to 14% across various monthly expenses, services, investments, insurance policies, and luxury spending. It provides tables that estimate the increased costs for common expenses like utility bills, service bills, investing and banking fees, insurance premiums, and luxury spending. The increased costs range from a few rupees to a few hundred rupees per year depending on the item. Additionally, it notes that the real cost increase may be higher as the tax hike could have a cascading effect that increases the prices of other products and services.

1. Impact of Services Tax Hike on Individuals
Monthly Budget

2. Impact on Utility Bills
Amount in Rs.
Utility
Bill Amount
per month
Existing ST-@
12.36%
New ST-@
14%
Difference
Total
Yearly
Impact.
Mobile 800 99 112 13
531
Landline 500 62 70 8
Internet 800 99 112 13
Cable/DTH 600 74 84 10
Total 2,700 334 378 44
The real impact of the hike could be higher because it is likely to have a cascading effect on the cost of products and services.

3. Impact on Service Bills
Amount in Rs
Services
Bill Amount
per year
Existing ST-@
12.36%
New ST-
@
14%
Difference
Total
Yearly
Impact.
Car servicing 5,000 618 700 82
192
Dry cleaning 4,000 494 560 66
Online shopping delivery 2,000 247 280 33
Railway travel 2,500 93 105 12
Total 13,500 1,453 1,645 192
The real impact of the hike could be higher because it is likely to have a cascading effect on the cost of products and services.

4. Impact on Investing & Banking
Amount in Rs
Investing and Banking Basic Premium
per year
Existing ST-@
12.36%
New ST-@
14%
Difference
Total Yearly
Impact.
Stocks Brokerage 3,000 371 420 49
303
Demat a/c 500 62 70 8
Financial Advisory 8,000 989 1,120 131
Credit Card (Interest) 1,000 124 140 16
Interest on loan 6,000 742 840 98
Total 18,500 2,287 2,590 303
The real impact of the hike could be higher because it is likely to have a cascading effect on the cost of products and services.

5. Impact on Insurance Bills
Amount in Rs
Insurance Basic Premium
per year
Existing ST-@
12.36%
New ST-@
14%
Difference
Total
Yearly
Impact.
Medical Insurance 18,000 2,225 2,520 295
674
Home Insurance 2,500 309 350 41
Car Insurance 8,000 989 1,120 131
Life Insurance Premium 30,000 450 525 75
Term Plan Premium 8,000 989 1,120 131
Total 66,500 4,961 5,635 674
In traditional plans, service tax is 3.5% of premium in first year and 1.75% thereafter. In term plans and
general insurance, the tax rate is 14%.
The real impact of the hike could be higher because it is likely to have a cascading effect on the cost of products and services.

6. Impact on Luxury Bills
Amount in Rs
Services Basic Premium
per month
Existing ST-@
12.36%
New ST-@
14%
Difference
Total
Yearly
Impact.
Eating out 5,000 247 280 33
2,016.00
Air Travel 6,000 36 42 6
Movie 1,500 185 210 25
Spa and Beauty 1,800 222 252 30
Hotel Accommodation 3,000 371 420 49
Hired Taxi 1,500 185 210 25
Total 18,800 1,246 1,414 168
Only 40% of the food bills is liable to service tax. But given that urban Indians are eating out very often, this could add up to
a neat sum.
The real impact of the hike could be higher because it is likely to have a cascading effect on the cost of products and services.

7. Thank You
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