Pranab Mukherjee, Finance Minister of India announced new proposal for Service tax in Budget India 2010. There is no major change in Service tax proposal. Service tax rate will remain same as earlier 12 percent.
However, Pranab Mukherjee did not spell the details of service tax proposal. Revenue from direct taxes will be reduced by 26 thousand crores but revenue from indirect taxes will be enhanced by 46 thousand crores.
Stock market has been responding positively to the union budget. It is up by more than 300 points at the time of writing this post. Ballabh Bhansali has responded this as a tremendous fiscal stability.
(Jyoti Kothari, Proprietor, Vardhaman Gems, Jaipur represents Centuries Old Tradition of Excellence in Gems and Jewelry. He is also ISO 9000 professional)