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: empanelment :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: due date for vat payment :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: cpt :: VAT Audit :: ACCOUNTING STANDARD :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: VAT RATES
« Indirect Tax »
 Indirect tax wing rejigged ahead of GST launch
 Grey areas remain for foreign investors on tax issues
 GST: New indirect tax regime to remove inter-state barriers, stimulate exports, says Nirmala Sitharaman
 Cabinet Approves 4 GST Supplementary Bills
 GST Council approves all five draft bills ahead of new indirect tax regime
 CAG questions income tax deparment’s ability to probe shell companies
 Income from MF investments must be shown in income tax returns
 Indirect tax higher than direct tax revenues in April-Feb
 Many foreign investors reach out to tax experts about indirect transfer of shares provisions
 How changes in capital gains norms impact your portfolio
 It's time to really pull up India's out-of-control banks

Tax shortfall may dash grand budget hopes
December, 15th 2014

Fiscal deficit target challenging as only half the indirect tax collection aim met in April-November; govt banks on divestment and cut in food and oil expenditure to bridge the gap

Even as finance minister Arun Jaitley has rolled up his sleeves for preparing Budget 2015-16, he is likely to face fiscal constraints on announcing tax leeways and public expenditure as the revenue numbers in the first eight months have not been encouraging.

During April-November, the government achieved only 52%, or Rs 328,662 crore, of the targeted revenue of Rs 623,244 crore on the indirect tax front, which means that the government has only four months to achieve 50% of the targeted sum.

These numbers assume significance as the fiscal deficit has reached 83% of the target for this fiscal in the first six months itself.

While finance ministry officials say the situation may hurt the fiscal deficit target for the current fiscal, they feel that the last quarter will be comfortable as far as collections are concerned.

A finance ministry official told dna, "At the moment, it appears that the government's hands are tied as far the big announcements on the tax front and other expenditure in the budget are concerned as it may impact the deficit target. But we hope that the revenue collection figure will improve in the last quarter of the fiscal, thereby providing the government the requisite maneuverability."

The NDA government inherited from the previous UPA regime an economy riddled with high deficits and inflation. On the indirect tax front, service tax collections have remained subdued in the first eight months of the fiscal.

Service tax collections have increased 11.5% from Rs 91,982 crore in April-November 2013 to Rs 102,592 crore during April-November 2014. However, this is just 47.5 % of the target fixed in the budget for 2014-15 at Rs 215,973 crore.

Customs collections at Rs 123,308 crore during April-November 2014 rose 10.2% over the same period last year. This translates into 61.1% of the targeted revenues for 2014-15 at Rs 201,819.

Savings on the food bill and softening of crude oil are now being counted upon by the finance ministry mandarins as a breather to save the fiscal. Also, the government has finalised plans to sell a part of its stake in Coal India, ONGC and NHPC under its disinvestment programme for 2014-15 targeted to mop up Rs 58,425 crore. As per the Action Plan of 2014-15 on Disinvestment, Coal India, ONGC and NHPC have been approved for divestment.

Yawning gap
52%, or Rs 328,662 crore, of the targeted indirect tax target achieved so far

Service tax:
11% rise at Rs 102,592 crore during April-November 2014
47.5% of the target for this fiscal met

10.2% increase at Rs 123,308 crore in first eight months of this fiscal
61.1% of the targeted revenues for 2014-15

Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

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