Weddings, travel and stay, visits to the salon, concerts and plenty of other things are set to become costlier from today with the increase in service tax from 12.36 per cent to 14 per cent. The hike, which was announced in the Union Budget this year, will come into force from Monday.
“From the basic shamiana to outdoor catering to hall rent, everything related to a wedding is becoming costlier. Even the make-up and clothes for the bride and groom are set to become expensive as tax for such services too are going up. At this rate people will soon start conducting low-budget weddings,” says Murugesan, a caterer.
Travellers will soon start reducing the number of days of their trip since travel and stay attract service tax, says R. Anand of Uttarakhand Tourism, Chennai.
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“Large groups too prefer to travel by cars instead of buses since that means lesser tax. In place of tax of Rs. 3,090 for a bill of Rs. 1 lakh, we will now be collecting Rs. 3,600,” he explains, adding that such an increase will affect the tourism industry.
R. Srinivasan of Tamil Nadu Hotels Association said the increase will no doubt impact the industry since air-conditioned dining halls and rooms too will become costlier. “Regular customers will have no option but to bear with the increase. But they will grumble and question us about the difference in the rate,” he says.