Already in the mood to party after the increase in income tax exemptions? Go right ahead. But take a few minutes to scrutinise the dry-cleaning bill of the dress you are planning to wear. Or that of the last dinner at your favourite club.

You’ll notice that the last item on the bill is the service tax, which adds a significant 12% to the total cost. Service tax has come a long way from the time when it was imposed at 5% on telephone bills, stock-broking charges and general insurance premium.

The tax rate has since jumped to effectively 12.36%, including the cess. This Budget has added four new services in the tax net, taking the tally to 104. Here’s a list of some services of common use under the tax net:

• Air travel agents
• Architects
• Asset management
• Banking and other financial services
• Beauty parlours
• Cable operators
• Cleaning services
• Clubs and associations
• Coaching centres
• Courier services
• Credit card, debit card, charge card or other payment-related services
• Design services
• Dry cleaning
• Event Management
• Fashion designers
• Franchise services
• General insurance
• Health club & fitness centres
• Interior decorators
• Internet cafes
• Internet telephony services
• Mandap keepers
• Photography services
• Public relations services
• Rail travel agents
• Real estate agents
• Renting of immovable property
• Residential complex construction
• Stock brokers
• Supply of content
• Telephone
• Telex services
• Telegraph services
• Tour operators

Services added in Budget 2008-9

• Stock and commodity exchanges and clearing houses
• Asset management firms offering unit-linked insurance plan (Ulip)
• Customised software
• Right to use goods, in cases where VAT in not payable