Effective 8th March, taxi service is going to be expensive due to service tax. Election 2014 was with a theme that things will be made cheaper. I do not know prices of which item got reduced post 2014 election. Following is the message received from Taxi operator.
"Our services have been brought under the ambit of Service Tax levied in latest Budget presented by the Honbl. Finance Minister, Mr. Arun Jaitley.
In the light of this, all the taxi rides you take starting 8th March 2015 (Sunday) will have an additional Service Tax as applicable (currently at 4.944%)" more
"Our services have been brought under the ambit of Service Tax levied in latest Budget presented by the Honbl. Finance Minister, Mr. Arun Jaitley.
In the light of this, all the taxi rides you take starting 8th March 2015 (Sunday) will have an additional Service Tax as applicable (currently at 4.944%)" more
Viewed by 110
View all 10 comments Below 10 comments
Dear Shri Tayal Ji, Thanks. Please be assure that I have not taken it otherwise. I always believe in healthy discussion. Your input is surely an encouraging. I agree what you have stated about inflation. The ground reality is the prices have not come down. A poor villager does not understand the term like inflation. He understand whether the products he is buying are increased or decreased. Now with the increase in taxes and services taxes (introduction of new items like taxi service and in general increase from 12.36% to 14%) the prices are going to go upwards and then we will realise the efeect on inflation. It will be a cascading effect whether you travel or dine in restaurant. Please abreast me with your view that whenever the prices of petrol and diesel were increased the transport sector also increased the prices. Now with the recent downward in international prices of petroleum products, it has got effect on Indian prices also (ofcourse not to the extent to which they ought to have been reduced). Whether the transport sectors reduced prices due to reduction in prices of petrol/diesel. more
Mar 10
Dear Umesh ji, I do agree that lower inflation particularly helps BPL & lower middle class families. RBI targeting consumer price inflation is a very welcome policy in this regard. You would also appreciate service tax on taxi travel hardly impacts this class. more
Mar 10
Dear Mr.Virmani, what I have stated is a fact of consistent Govt policy in regard to indirect taxes over the last more than a decade. You need not take it personally. As regards inflation, suffice it to say that RBI wouldn't have reduced repo rate twice if inflation hadn't come down. You must be aware that under the new governor Raghuram Rajan, RBI has declared its main policy thrust clearly as inflation targeting based on consumer price index. more
Mar 10
Dear Shri Rayal Ji, Thanks for your comments. I shall be grateful if you could inform me any single commodity for which the prices has been reduced. more
Mar 10
Mr. R. Tayal Ji. Will it help lower middle class or lower class or BPL families to sustain their life if prices of essential commodities for daily consumption and living come down to a small portion of their income level. more
Mar 09
