The Central Board of Direct Taxes on Tuesday said the new service tax of 14 per cent would be applicable from June 1.
Now, eating out, using a mobile phone and travelling by air, among other things, would cost more from June.
The notification comes after the passage of the finance Bill earlier this month.
The Budget had announced an increase in service tax from 12.36 per cent to 14 per cent for 2015-16. It had also announced widening of the definition of service tax.
This proposal was floated by the government to facilitate the roll out of the national Goods and Services Tax, expected to be rolled out from April 2016.
This step would help the government earn 24.76 per cent more revenues from services at Rs 2.09 lakh crore in 2015-16 against Rs 1.68 lakh crore in the revised estimate for the current financial year.
Source: Business Standard