Monday, February 28, 2011

Union Budget 2011 Highlights

Finance minister Mr. Pranab Mukherjee on 28-02-2011 presented India's budget for the coming financial year 2011-2012 beginning in April.

Following are the highlights of the budget:

  • Cut in excise duty of hybrid fuel, yarn, steel
  • Nominal 1% central excise duty on 130 items entering the tax net. Precious stones, gold and silver jewelery will be exempted
  • Basic food, fuel exempted from central excise duty: FM 
  • Export duty at 20% for iron ore: FM 
  • Basic customs duty on Pet Coke and Gypsum to be reduced to 2.5%: FM 
  • Base rate on excise duty raised to 5%: FM 
  • Peak rate for customs duty unchanged: FM 
  • 1% excise duty on 130 new items: FM 
  • No change in CENVAT rates: FM 
  • No change in Service Tax rates: FM 
  • Reduce customs duty on micro irrigation equipment: FM 
  • FM: to impose mandatory levy of 10 pct on branded garments 
  • No excise duty on UMPP equipment
  • Duty reduction on LEDs to promote adoption by more automakers
  • To tax life insurance service providers
  • Legal representation for businesses under service tax
  • Service tax on hotel accommodation above Rs 1500 per day
  • Domestic travel to pay Rs 50 service tax, Rs 250 on international travel
  • AC hospitals with more than 25 beds under service tax
  • AC restaurants serving liquor under service tax net
For more details visit

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