The service tax net just got a little wider. Contrary to expectations, the levy went up by a marginal two per cent, to 10 per cent from the existing eight. But India Inc was still in a tizzy on Thursday as banking and financial services, airport services, road-based goods transport, intellectual property services and multi-system operators (MSOs) were roped into the tax net. “Fifty eight services have been brought under the (service) net so far. I propose to add some more,’’ the finance minister said. Business exhibition services, survey and exploration services, opinion polls, brokers of forward contracts, pandals and shamiana contractors, independent TV and radio programme producers, construction services and life insurance services to the extent of risk premium, now come under the service tax net. With the levy on services already covered also raised from eight per cent to 10 per cent, industry response ranged from blank perplexion and disbelief to belligerence. Most sectors have asked Consumers to hold their breath over hikes in costs. ‘‘The service tax will be part of an overall tax regime that consumers will learn to live with very soon. As taxation generally lowers, we can attune ourselves to taxes that ultimately fund social services,’’ said Anil Chopra, CEO and director, Bajaj Capital The cost of maintaining and operating a bank account will also go up with services like issue of pay orders, demand draft, cheque, letters of credit, bill of exchange, overdraft facilities, bill discounting, safe deposits, lockers, or safe vaults, will be under the tax net.
