Monday, 7 April 2014

Direct tax mop-up touches revised estimates

We also bring to you latest news from Tax in India. Below is the article published in one of the News Tabloid in India.

Efforts to shore up tax revenue appear to be showing results, with the direct tax collection set to exceed the revised estimate.

Finance Ministry officials said the total direct taxes collection had touched Rs. 6.36 lakh crore in 2013-14. Direct taxes include personal income tax, corporate tax and wealth tax. Originally, the Budget estimate for direct tax collection was Rs. 6.67 lakh crore.

Revenue authorities made intense efforts to collect taxes, especially from non-filers of returns. The department’s business intelligence project identified 2.1 million potential non-filers, and sent 50,000 letters in the first phase. More such letters were sent in phase two.

Indirect taxes
However, there are doubts over achieving the revised estimates for indirect tax collection, which include customs/import duty, excise duty and service tax.

The Finance Ministry has scaled down the target to Rs. 5.20 lakh crore from the Budget estimate of Rs. 5.65 lakh crore.

Although officials refused to quantify the shortfall, collections are not likely to cross Rs. 5 lakh crore.
The slowdown in manufacturing and lower growth in services have affected collection of excise and service taxes, respectively, said officials.
(This article was published in the Business Line print edition dated April 5, 2014)

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