The Service Tax provisions in the budget detail out 17 areas on which you will not be charged a tax, and for absolutely everything else that involves a service, you will need to pay 12 % (plus cess). The seventeen areas are:
1. Services by the Government or local authorities: These will include such services like getting a passport, a driving license, paying municipal taxes, car registration fees, police fines and so on. What you pay for such services will not include any service tax.
But of course, there are exceptions. Service tax will still be applicable on:
- Speed or Express Post, and life insurance bought from a post office
- airport services
- government services provided to businesses. (Companies will pay it on the annual filing charges payable to the Registrar of Companies, for instance).
- 2. Services by the Reserve Bank of India. They won't tax the ones that print the money!
- 3. Foreign consulates and embassies in India. Hopefully this will mean to visa fees as well.