Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: cpt :: Central Excise rule to resale the machines to a new company :: VAT Audit :: VAT RATES :: form 3cd :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: ACCOUNTING STANDARDS :: due date for vat payment :: empanelment
News Headlines »
 Securities excluded from GST ambit in revised Bill
 GST dilemma: Hope fades for new tax regime launches tax investment platform
 Is government tapping your phone?
 Income tax department to use analytics to look for discrepancies in bank accounts
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice

'Advance tax growth to slow in December quarter too'
November, 15th 2008

Net direct tax collections, which have grown over 36 per cent for the last two years, have come under stress this year. The growth has slowed to 29 per cent in the first seven months of fiscal 2008-09 due to lower advance tax payments by companies.

Central Board of Direct Taxes Member (revenue) Saroj Bala told PRASHANT K SAHU that advance tax payments by companies were likely to go down further in the December quarter and the department was gearing up to mobilise additional revenue from other means like tax deducted at source, recovery of arrears and fresh demands from assessments.

Are net direct tax collections on track? Direct tax collections grew 29 per cent in April-October this fiscal and are mainly driven by corporate income tax. Even within corporate tax, it is more on account of tax deducted at source (TDS), which grew by 48 per cent. In comparison, the advance tax collection growth was only 20 per cent this year as against 30 per cent last year. In fact, advance tax paid by individuals has declined by 26 per cent, mainly on account of higher exemption limit this year.

Are advance tax payments going to come down further?
I think so. I have tried to analyse advance tax payments by top companies in the September quarter. I do think companies will pay much less in the December quarter because of the impact of the global slowdown.

Many sectors are not doing well. Foreign banks, some Indian banks, cement industry, software companies and oil companies have not done well. Advance tax collections from top ten cement companies have declined by 25 per cent while the advance tax paid by top ten software companies has grown only 11 per cent till September. Last year, most of the companies had done well.

Region-wise, Uttar Pradesh and north-eastern states are not doing well. Mumbai, Pune and Gujarat regions have also shown signs of moderation., Delhi, Hyderabad, Bangalore, Kochi and Bhubaneswar have seen good tax collections.

How do you plan to make up for the advance tax shortfall as it normally constitutes a major chunk of total revenue collections?
We are trying to monitor advance tax collections. Secondly, we are trying to persuade and at times ensure through legal recourse that companies pay advance tax and TDS in time. We are carrying out a lot many TDS surveys and verifications. We have found that a large number of companies, even after deducting and collecting taxes, are not paying to the government account by the seventh of next month. We are getting these payments made to the government account.

We have also come across non-deduction or short-deduction of taxes running into crores of rupees. We are enforcing compliance in these cases. We are trying to collect whatever amount we can from the outstanding arrear demands. We are also looking at some quality assessments based on cases selected through computer-aided scrutiny system by using the annual information returns filed by various third parties so that demands are raised in the current year and taxes collected. We are trying our best.

But whatever we are trying to achieve we may not be able to achieve because of shortage of manpower and demoralisation of officers after unfair treatment in the Sixth Pay Commission award.

To augment revenue from these sources, you need a very high morale and a lot of infrastructure. With these two things not there, our field formations are doing whatever best they can to ensure that the target is met.

How difficult is to achieve the Rs 3,95,000 crore target?
According to the Budget estimate, the tax collection target was fixed at Rs 3,65,000 crore (16 per cent growth) for 2008-09. For the last few years, we have constantly achieved over 30 per cent growth in direct tax collections. How long can one maintain such growth? The internal target of Rs 3,95,000 crore (26 per cent) was not based on principles of revenue forecasting. But then, once a target is given, we will make all-out efforts.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multi-level Marketing MLM India Affiliate Marketing Affiliate Marketing Software MLM Software MLM Solutions Multi level marketing solutions MLM Servi

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions