Wednesday, 1 June 2016

Here is a 10-point know-how on how much more you will pay:

1.    A 0.5 per cent "Krishi Kalyan" or farmer development cess will be levied on all services from today. This means that you will pay 15 per cent service tax rather than 14.5 per cent. So watching movies, dining out, travelling, making phones calls and buying insurance and property will be costlier. 
2.    Train tickets for AC class will also become costlier as the "Krishi Kalyan" cess will levied purchase of these. Service tax is not applied to non-AC class travel in trains. 
3.     Petrol prices have been hiked by Rs 2.58 a litre and diesel by Rs 2.26 as part of fortnightly revisions by oil marketing companies in the wake of increase in global oil rates.  After the price revision, petrol will cost Rs 65.60 per litre in Delhi and diesel Rs 53.93/litre. 
4.    The price of non-subsidized LPG cylinders has also been hiked by Rs 21 and will now cost Rs 548.50 in New Delhi after the price revision. 
5.   The price of aviation turbine fuel was today sharply hiked by 9.2 per cent. Jet fuel accounts for nearly half of the operating expenses of airlines in India and will impact ticket prices. 
6.     A luxury tax of 1 per cent will be levied from today on cars that cost over Rs 10 lakh. This extra tax will be collected by the seller of the car and will be applicable on the ex-showroom price. However, this extra payment can be set off against the total tax liability of the buyer.
7.    Payment in cash for goods and services worth more than Rs 2 lakh will attract a 1 per cent tax collected at source from today.  Finance Minister Arun Jaitley had in this year's Budget had imposed the tax to discourage high-value transactions in cash. 
8.   However, for cash purchase of gold jewellery, the limit of Rs 2 lakh will not apply. It stays at Rs 5 lakh. 
9.   For stock market traders, sale of options will also attract an increased securities transaction tax (STT) of 0.05 per cent. Earlier, the rate was 0.017 per cent.  Options are contracts that give the buyer the right, but not the obligation, to buy or sell a security or other financial asset at an agreed-upon price during a certain period of time.
10.  The Congress has slammed the government for the price hikes. "Everything is expensive now. Is this achhe din? The government has burdened the common people," said Congress spokesperson Randeep Surjewala.  

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