Tuesday, February 24, 2009

Finance Minister cuts Service Tax by 2% ;

Finance Minister decided to cut Service Tax by 2% ; Thus bringing it down from 12% to 10%. What does that mean to a common man ?.

Its not a huge saving but quite a good amount of saving for an Individual.

Lets a take a simple example of an Individual look at things we use in daily lives for monthly bills.
1) Telephone bill = Rs 500
2) Cell Phone bill = Rs 700
3) Internet bill = Rs 1000
4) Cable TV = Rs 300

This comes to nearly Rs 2,500 per month meaning Rs 30,000 a year and the service tax @ 12% would come to around Rs Rs 3,600 now the same would come down to Rs 3,000 so you end up saving around Rs 600 bucks for a year.

This list above does not include various other service tax you might be paying, like courier fees, lawyers fees, Chartered Accountants fees, Doctors Fees etc . Everywhere now you would saving around 2% which is really good in this tough times.

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