Service Tax back at 10%

Image : taken from The Hindu

Good Sense prevailed or let be an Election Sweetner.

Service Tax has been reduced to 10%. Thats Good News.

You might wonder whats the Big deal about a puny cut of 1.8% ( effective ).

It isn't all that small. For instance on a 1 Lakh bill the service tax will work out to 1800/=(equal to one months mobile bill).

As an aftermath to this announcement S&P is considering to lower India's Credit rating to Junk.