Skip to main content

Direct tax receipts soar 17.5% in April-August

Direct tax receipts soar 17.5% in April-August
Collections at Rs 2.24 lakh crore higher than government estimates

Direct taxes fetched 17.5 per cent higher receipts to the exchequer for the first five months (April-August) of the current financial year (FY18), more than what was projected for the entire financial year. However, the growth rate slowed in August.

Direct tax collections, net of refunds, stood at Rs 2.24 lakh crore during the April-August period of FY18.

The receipts had grown 19.1 per cent in the first four months of FY18.

The government had projected 9.8 lakh crore from the direct taxes — corporation tax and personal income tax — in 2017-18, which would be 15.7 per cent higher than Rs 8.47 lakh crore in FY17. Till August, 22.9 per cent of the target has been achieved.

After adjusting for refunds, the growth in corporation collections was at 18.1 per cent during the period, while personal income tax collections rose 16.5 per cent.

Before refunds, corporation tax collections were up five per cent, while personal income tax receipts went up 16 per cent, highlighting corporates are still struggling to recover, even as net collections are robust due to refunds.

A total of Rs 74,089 crore refunds were given by the government in this period.

The direct tax kitty is crucial to the government since the goods and services tax (GST) collections net of refunds dwindled in July, the first month of its roll-out. For close to Rs 95,000-crore revenue collected so far for July, around Rs 62,000 crore has been claimed as input tax credit for taxes paid for the period before July 1. The remaining amount will be distributed between the Centre and the states.

The indirect tax collection figures for the month of August is yet to come. The numbers are significant for the government since the Centre’s fiscal deficit has already crossed 92 per cent of the Budget target in just four months.

The Business Standard, New Delhi, 12th September 2017

Comments

Popular posts from this blog

At 18%, GST Rate to be Less Taxing for Most Goods

About 70% of all goods and some consumer durables likely to cost less

A number of goods such as cosmetics, shaving creams, shampoo, toothpaste, soap, plastics, paints and some consumer durables could become cheaper under the proposed goods and services tax (GST) regime as most items are likely to be subject to the rate of 18% rather than the higher one of 28%.

India is likely to rely on the effective tax rate currently applicable on a commodity to get a fix on the GST slab, said a government official, allowing most goods to make it to the lower bracket.

For instance, if an item comes within the 12% excise slab but the effective tax is 8% due to abatement, then the latter will be considered for GST fitment.

Going by this formulation, about 70% of all goods could fall in the 18% bracket.

The GST Council has finalised a four-tier tax structure of 5%, 12%, 18% and 28% but has left room for the highest slab to be pegged at 40%. A committee of officials will work out the fitment and the council…

Coffee-Toffee, the GST Debate Continues

Hundreds of crores of rupees in the form of taxes ride on the exact categorisation of products Is Parachute hair oil or edible oil? Is KitKat a chocolate or a biscuit? Is a Vicks tablet medicament or confectionery? For the taxpayer and the tax collector, this is much more than an exercise in semantics -hundreds of crores of rupees ride on the exact categorisation.
As the government moves closer to rolling out the goods and services tax (GST) on July 1, many such distinctions are being debated so that no ambiguity remains. Not just that, the government is revisiting old tax cases that were lost over product categorisation, according to people with knowledge of the matter, presumably with a view to making sure that revenue collections can be maximised. “In the past, several tax officers had challenged some of the product categorisations, including those in the retail segment, but lost out in court or at appellate level,“ said one of the persons. “Now we have a chance to go ahead with speci…

Deposit gush:-CA Institute Bats for Special Audit