Budget 2006 and the Storm in Juice Glass

Many of them were waiting for the Union Budget - 2006. India's finance minister Mr. Chidambaram did not declare something which will hurt to the middle class of India. What that would be - no cooking gas price hike, no big changes in Income Tax rules.
That's enough for an Indian. But there was one point, service tax increased to 12% from 10.2% and that's also applicable for Cash Withdrawals from ATM. Now this is too much if you read it as it is. I was watching a stormy discussion goin on, on this point at a Juice center in the hot afternoon. I observe one thing, people run their fundas after the budget day. Some browse the net and read some pdf files online and comment,

"OK, now if you withdraw 1000 bucks from ATM, 120 bucks will be service tax :("

Believe me, people in India rather everywhere in world are very emotional about the Government taxes ;).
Now tell me, how the ATM machine will deduct this money. Will it give you 880 bucks or you will have to withdraw 1136.30 Rs. to get 1000 bucks. Someone would comment wisely,

"Buddy, if they start deducting 120 bucks for each 1000, I would make sure that I withdraw enough money for one year atleast before the rule applies"

:)). That was funny. One reply came in,

"What the heck, if that's the case, Bank should close the ATMs and deliver the money at home.."

Won't be a service charge then LOL.
Can anyone think that service tax will be charged if they ever apply a service charge for withdrawals. Hussshh!!