Duty Cuts Impact Govt Indirect Tax - Feb 20, 2009

The government on Feb 19 said the indirect tax collections in this financial year was affected by the excise duty cuts announced in the last year''s Budget along with the slowdown in some sectors. According to S S Palanimanickam, Minister of State for Finance, "The Central excise duty rates were reduced in the Budget 2008 ... These reductions along with some slowdown in specific sectors affected the revenue (indirect tax) collections".

He also added that central excise duty rates on motor spirit as well as the high-speed diesel oil were also reduced subsequent to the Budget. He pointed out that that government has taken a number of administrative steps to plug the loopholes in law procedures and improve the revenue position as well as the data collection and analysis, audit and anti-evasion measures. Regarding the duty evasion in the export-oriented units, he said that persuasive action is being taken by the government to receive duties along with initiation of penal proceedings.

Higher TDS Collection Lifts Direct Tax Receipts 71% In April-May - June 19, 2008

The Center''s net direct mop up registered a 71.28 per cent rise during the first tow months of the current fiscal. The mop up went up during the period from Rs Rs 13,335 crore to Rs 22,840. This has been possible by higher tax deduction at source (TDS).

Personal income-tax (including fringe benefit tax, securities transaction tax and banking cash transaction tax) went up by 73.05 per cent in April-May 2008 to Rs 14,690 crore (Rs 8,489 crore). Corporate tax collections during the first two months of the current fiscal grew 68.05 per cent to Rs 8,126 crore (Rs 4,835 crore). The UPA Government''s strategy of moderate and stable direct tax rates has paid rich dividends in the last four years, especially in terms of better compliance. The tax payer base has gone up from 3.08 crore in 2004-05 to 3.27 crore in 2007-08. The high rates of economic growth have also helped and the revenue department is looking to raise about Rs 4 lakh crore from direct taxes this fiscal. The robust collection performance in April-May 2008 has come in the backdrop of Budget 2008-09 announcements on personal income-tax, when the threshold limit of exemption was hiked to Rs 1.5 lakh for all assessees.

Direct Tax Mop Rise 132-Pc

Net direct tax collections went up by 132 per cent to Rs 12,642 crore in the first month of the current fiscal, as against Rs 5,441 crore in the corresponding month of the previous fiscal. The Securities Transaction Tax (STT) collections, however, came down by 18 per cent in April to Rs 351 crore, compared with Rs 431 crore in the corresponding month of 2007-08.

Additionally, mop up from the Fringe Benefit Tax (FBT) and Banking Cash Transaction Tax (BCTT) have come down in April over the corresponding month a year ago, sources said. However, Personal Income Tax (including STT, FBT and BCTT) was up 124 per cent at Rs 8,596 crore in April, compared with Rs 3,834 crore in the same month a year ago. Corporation income tax collections also witnessed a 142 per cent rise at Rs 3,881, compared with Rs 1,602 crore during the month a year ago. Other collections were at Rs 165 crore in the month, compared with Rs 5 crore a year ago. Direct tax collections rose by 35 per cent to around Rs 3,12,000 crore in 2007-08, or Rs 7,240 crore more than the revised estimate of Rs 3,04,760 crore for the year. Direct tax collections had grown by over 39 per cent to Rs 2,30,184 crore in 2006-07.

41pc Increase In Net Direct Tax Collections

New Delhi: The Centre''s direct tax revenues remained to be optimistic, with collections during the period April 1, 2007 to February 15, 2008 registering 41.4 per cent increase to Rs 2,28,745 crore. This collection level constituted 85 per cent of the budgeted direct tax target of Rs 2,67,490 crore for 2007-08. The strong growth in direct tax collections so far in the current fiscal has increased hope among taxpayers that the Finance Minister, Mr P Chidambaram, will moderate direct tax rates in the forthcoming budget. While corporate tax collections increased 38.78 per cent for the period under review at Rs 1,38,073 crore, increase from Rs 99,488 crore in the same period during the previous fiscal, personal income tax (including FBT, STT and BCTT) grew by 45.64 per cent at Rs 90,356 crore, up from Rs 62,040 crore. Securities transaction tax (STT) collections registered 84.64 per cent growth to Rs 7,878 crore (Rs 4,267 crore). Fringe benefit tax (FBT) collections were up 29.75 per cent to Rs 5,216 crore (Rs 4,020 crore). Banking cash transaction tax (BCTT) collections grew 16.81 per cent to Rs 478 crore (Rs 409 crore).

Net Direct Tax Collections Increase 40pc Till Jan

New Delhi: The Centre''s direct tax revenues continued to be optimistic, with net direct tax collections registering 40.47 per cent increase for the ten-month period April 2007-January 2008 at Rs 2,18,538 crore (Rs 1,55,576 crore). Corporate tax recorded a growth of 37.54 per cent at Rs 1,33,851 crore, up from Rs 97,315 crore during the previous fiscal. Personal income-tax (including FBT, STT and BCTT) increased by 45.45 per cent at Rs 84,349 crore, up from Rs 57,990 crore. Growth in Securities Transaction Tax (STT) was 85.71 per cent (Rs 6,793 crore against Rs 3,658 crore) and Fringe Benefit Tax (FBT) was 30.74 per cent (Rs 5,161 crore against Rs 3,948 crore). Banking Cash Transaction Tax (BCTT) grew by 14.51 per cent (Rs 460 crore against Rs 401 crore). The overall direct tax growth was highest in the Mumbai region at 64.26 per cent; followed by North Western region (Chandigarh) at 48.19 per cent, Pune at 44.37 per cent, Karnataka and Goa regions (Bangalore) at 43.76 per cent and Andhra Pradesh (Hyderabad) at 39.53 per cent.