Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« Top Headlines »
Open DEMAT Account in 24 hrs
 March 31 deadline is getting near. How to save income tax with tax loss harvesting?
 45-day MSME payment rule: Impact and details of Section 43B(h) explained
 Small savings schemes that offer tax benefits of up to Rs 1.5 lakh under section 80C
 RE-OPENING OF CORRECTION WINDOW FOR MAY 2024 CA EXAMINATIONS
 Powerful Upgrades, Tally 12+1 months renewal Plan and Connected Services for your growing Business - March 2024
 How innovative solutions can help fix the Sec 43B conundrum for MSMEs
 Income Tax dept asks many individuals to explain high value transactions of FY20-21 as Updated ITR deadline nears
 Release Notes for TallyPrime and TallyPrime Edit Log Release 4.1 | What s New!
 Deadline to file updated ITR FY20-21 ends on March 31: Details on additional tax
 4 tax-planning mistakes to avoid this season
 ITR 2024: Here are 8 ways by which senior citizens can save on taxes this year

Indirect tax to help meet FY16 target
February, 11th 2016

The finance ministry said on Wednesday that tax collections stood at Rs 10.7 lakh crore in the first 10 months of FY16. This constituted 73.5 per cent of the Budget estimates (BE) of Rs 14.5 lakh crore.

According to the ministry, direct tax collections might fall short of the Budget target of about Rs 8 lakh crore in FY16 but it would be offset by robust indirect tax collections. As such, direct tax collections might have a lower figure in the revised estimates of 2015-16, compared to BE, while the indirect tax mop-up would have a higher figure than BE of Rs 6.5 lakh crore. The ministry hoped it would meet tax collections target in FY16.
Read our full coverage on Union Budget 2016

Amid critics doubting the latest gross domestic product (GDP) numbers, which showed the economy growing 7.6 per cent in FY16, Revenue Secretary Hasmukh Adhia said the latest tax figures supported the GDP data. On the first upload on YouTube by the finance ministry, Adhia said direct tax collections were up 10.9 per cent at Rs 5.2 lakh crore till January of FY16 over that in the year-ago period, while indirect tax mop-up grew 33 per cent to Rs 5.4 lakh crore. Within direct tax collections, corporate tax rose 10.4 per cent and personal income tax by 11.8 per cent.

ALSO READ: Why give stimulus to a 'recovering' economy?

The government has achieved 65 per cent of BE direct taxes in this period. Indirect tax collections in the first 10 months constituted 80 per cent of BE for 2015-16. The revenue department expects an additional Rs 40,000 crore to come in from indirect taxes, which will offset the shortfall in direct tax mop-up. Analysing the trend in tax collections, Adhia said electrical machinery delivered 34.4 per cent higher Customs duty collections till January, compared to what it yielded in the corresponding period of the previous year. Similarly, imports of “other machinery” brought in 27 per cent higher revenues from Customs duty.

Assessing the trending of growth in services sector, the average growth of service tax stood at 27.2 per cent during the first 10 months of 2015-16 on a year-on-year basis.

Among the various sub-segments, bank and financial services saw service tax rise 39.9 per cent. Similarly, goods transport and services yielded 41 per cent higher service tax collections in the said period. The recent advance estimates released by the Central Statistical Office showed financial, real estate and professional services have been rising substantially.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting