Union Budget 2011 Highlights: Indirect Taxation

• Service tax widened to cover hotel accommodation above Rs.1,000 per day, A/C restaurants serving liquor, some category of hospitals, diagnostic tests
• Service tax on air travel increased by Rs.50 for domestic travel and Rs.250 for international travel in economy class. On other higher classes, Service tax to be at 10%
• Standard rate of excise duty held at 10 percent;
• No change in CENVAT rates
• Service tax rate unchanged at 10%
• Iron ore export duty raised to 20 percent
• Nominal 1% Central Excise Duty on 130 items entering the tax net
• Basic food and fuel and precious stones, gold and silver jewellery to be exempted
• Peak rate of customs duty maintained at 10%
• Basic customs duty on agricultural machinery reduced to 4.5% from 5%