The government on Saturday notified an increase in service tax rates to 10 per cent in addition to the 2 per cent education cess on it.

Eight new services have also been brought under the service tax net while the ambit of the earlier service was expanded with effect from September 10.

The new credit rules for Cenvat and service tax were also notified following presidential assent to the Finance Bill on Friday. Services provided by a sub-broker for trading in listed securities, and those by multi-system operators for cable television, have been brought under the service tax ambit.

Further, banking and financial services provided by any body, corporate or commercial concern, except by banks and financial institutions, have been included.

Services provided by a banking company or a financial institution, including a non-banking financial company dealing with lending, issue of pay order, demand draft, cheque, letter of credit and bill of exchange, issuing bank guarantee, over draft facility, bill discounting facility, safe deposit locker, safe vaults and operation of bank accounts, would also be subjected to service tax. Life insurance covers would also become costlier with the levy of service tax.

Tour operators, other than those operating tourist vehicles, will also be required to pay service tax.