BANGALORE: Individuals will need to reimburse additionally on purchase of mobiles, restaurant bills and travelling from now onwards as the service tax rate goes up to 14 percent from 12.36 percent, reports The Indian Express.

This decision was formulated by the Finance Minister Arun Jaitley in the budget 2015.

A percentage of the key administrations that will pull in higher duty and consequently get costlier are: airlines, advertising, construction, railways, construction, tour operators, architectures and credit.

Mobile administrators and Master card organizations have officially begun sending messages to supporters passing on the increment in service tax rate which will have a course on the bills.

Arun Jaitley said in the Budget speech, “To facilitate a smooth transition to levy of tax on services by both the Centre and the States, it is proposed to increase the present rate of service tax plus education cesses from 12.36 per cent to a consolidated rate of 14 per cent,” reports The Indian Express.

As per rail line service authorities, tolls for First Class and AC classes in traveler trains, other than cargo charges, will go up by 0.5 percent from June 1.

According to one of the official, "Currently, 3.7 per cent service tax is levied on train fares for AC Class, First Class and freight. This will go up to 4.2 per cent from June which means the rise is only 0.5 per cent," reports The Indian Express. Right now, there is reduction of 70 percent on passenger administrations.

Read more: Heat Wave; Nationwide Toll is 2,248 and Important Announcements From Google I/O