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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« Indirect Tax »
 Several records missing from Income Tax department, CIC told
  Indirect tax evasion cases post a decline in FY18-19
 Income tax return revision: How many times can a return be revised? Find out
 CBDT notifies new I-T return forms
 Here are the key changes in tax rules to come into effect from today
 GST revenue growth in 2018-19 to match last 10 years’ indirect tax growth, says SBI report
 Things You Should Know Before Filing Your Income Tax Returns (ITR)
 All education loans do not get income tax benefits
 FM Arun Jaitley to focus on direct and indirect taxes
 Income Tax For Individuals – Assessment Year 2019–20
 States set separate dates to implement e-way bill

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

Customs:
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 2018 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