• Standard rate of Service Tax retained at 10%

• Hotel accommodation in excess of Rs. 1,000 per day and service provided by air

• conditioned restaurants that have license to serve liquor to come into the tax net

• All services provided by hospitals with 25 or more beds with facility of central air conditioning will be taxed

• Service Tax on air travel both domestic and international raised.

• Services provided by life insurance companies in the area of investment and some more legal services proposed to be brought into tax net.

• All individual and sole proprietor tax payers with a turn over upto Rs. 60 lakh freed from the formalities of audit.

Proposals relating to Service Tax estimated to result in net revenue gain of Rs 4,000crore. Proposals relating to Direct Taxes estimated to result in a revenue loss of Rs 11,500crore and those related to Indirect Taxes estimated to result in net revenue gain of Rs. 11,300crore resulting in a net loss of Rs 200crore from the taxes.