The Union Budget 2010-11 presented by the Finance Minister Pranab Mukherjee in the Lok Sabha on Friday, supports the strategy for the development of agriculture and related sectors.
The Budget provides:
- Project import status at a concessional customs duty of 5 per cent with full exemption from service tax to the initial setting up and expansion of Cold storage, cold room including farm pre-coolers for preservation or storage of agriculture and related sectors produce; and Processing units for such produce;
- Project import status with a concessional import duty of 5 per cent for the setting up of mechanized handling systems and pallet racking systems in 'mandis' or warehouses for food grains and sugar as well as full exemption from tax for the installation and commissioning of such equipment;
- Full exemption from customs duty to refrigeration units required for the manufacture of refrigerated vans of trucks;
- Concessional customs duty of 5 per cent to specified agricultural machinery not manufactured in India;
- Central excise exemption to specified equipment for preservation, storage and processing of agriculture and related sectors and exemption from service tax to the storage and warehousing of their produce;
- Full exemption from excise duty to trailers and semi-trailers used in agriculture; and
- Exemption from Service Tax to the testing and certification of agricultural seeds. -- PIB