Sunday, 31 May 2015

New Service Tax 14% applicable from 1st June 2015 on all BSNL products

The current service tax 12.36 per cent including education cess revised to 14 per cent and will be applicable from 1st June, 2015 across the country on all BSNL products.

BSNL customers shock when they receive June, 2015 bill the excess amount added on BSNL Postpaid bill or Broadband bill or Landline bill. This is because of increased Service Tax from 12.36 per cent to 14 per cent. Assume if you’re getting monthly bill of Rs.1000 + 12.36 ST (Rs.123.6) = 1124 from June, 2015 you’v to pay extra amount for the difference Service tax i.e 14% - 12.36% = 1.64%). In this way if monthly bill is Rs.1123.6 (rounding Rs.1124 at 12.36 per cent) then at the rate 14 per cent 1140 i.e an extra amount of Rs.1140 – 1124 = 16 will be added to your bill (This is only example for your information, amount may vary according to usage).

When it comes to :BSNL Mobile Services Prepaid customers recharging GSM Topup vouchers, Special Tariff Vouchers for validity extension or call tariff the new service tax imposed on vouchers where the talk time or freebies offered on Topups/STVs will be adjusted according to new service tax without change in MRP of vouchers.

In this course major telecom operators may hike their vouchers price without effect on their monthly revenue. But, BSNL like State run Telecom Company without change in MRP and not to confuse customers about vouchers rates or arrive technical problems in the market for vouchers rates reduced the freebies offered on vouchers.

This new service tax at the rate 14 per cent will be applicable on BSNL products/ Mobile 2G/3G services from 01-06-2015 reducing freebies and validity in days.
All other terms and conditions will remain the same.

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