Technoglitch
Core Member
With the imposition of Krishi Kalyan Cess (KKC), the total incidence of service tax will increase to 15 percent, thus making eating out, phone usage, air and rail travel, expensive.
The equalisation levy or 'Google tax' in common parlance will apply only on payments relating to online advertisements.
Last month, Internet and Mobile Association of India (IAMAI) had said that levy on online advertisement revenue of foreign companies would "severely raise the cost of doing business" for Indian tech startups.
Also payment in cash for buying goods and services worth more than Rs 2 lakh with the exception of jewellery will attract 1 percent tax collected at source (TCS) from today. The existing TCS of 1 per cent on cash purchase of over Rs 5 lakh of jewellery and over Rs 2 lakh of bullion will continue, tax officials have said.
The Income Tax Department has been levying 1 percent TCS on cash purchase of bullion in excess of Rs 2 lakh and jewellery in excess of Rs 5 lakh since July 1, 2012. That position is maintained and there is no change in the
position, the officials said.
Besides, sale of options will also attract increased Securities Transaction Tax (STT) of 0.05 percent from today. Currently, STT is 0.017 percent.
15% service tax to Google tax: All you need to know about Budget proposals that kick in today - Firstpost
The equalisation levy or 'Google tax' in common parlance will apply only on payments relating to online advertisements.
Last month, Internet and Mobile Association of India (IAMAI) had said that levy on online advertisement revenue of foreign companies would "severely raise the cost of doing business" for Indian tech startups.
Also payment in cash for buying goods and services worth more than Rs 2 lakh with the exception of jewellery will attract 1 percent tax collected at source (TCS) from today. The existing TCS of 1 per cent on cash purchase of over Rs 5 lakh of jewellery and over Rs 2 lakh of bullion will continue, tax officials have said.
The Income Tax Department has been levying 1 percent TCS on cash purchase of bullion in excess of Rs 2 lakh and jewellery in excess of Rs 5 lakh since July 1, 2012. That position is maintained and there is no change in the
position, the officials said.
Besides, sale of options will also attract increased Securities Transaction Tax (STT) of 0.05 percent from today. Currently, STT is 0.017 percent.
15% service tax to Google tax: All you need to know about Budget proposals that kick in today - Firstpost
