Eating out in restaurants, getting beauty treatment and travel have become expensive from today as the government has hiked the service tax rate from 12.36 to 14%.

Some of the key services that have become costlier include rail and air travel, banking, insurance, advertising, architecture, construction, credit cards, event management and tour operators.

Besides freight charges, fares for AC classes in trains, buses have increased by about 0.5%. Airline companies have increases their tax rates from 4.94% to 5.60%. Also, the increased service tax will be levied on spa & beauty services.