Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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
 
 
 
 
Popular Search: VAT RATES :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: due date for vat payment :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: ACCOUNTING STANDARD :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit
 
 
General »
 The most thrilling idea before every Budget: No income tax
 Finance Ministry likely to tweak Minimum Alternate Tax norms to boost industry
 Income tax department warns people to keep away from benami transactions
 New helpline for income tax e-filing
 The Central Government notifies the Companies (Amendment) Act, 2017
 GST Returns: Government Relaxes Rectification Norms
 Will govt bring change in income tax slab? here's the present structure
 No income tax exemption to cooperative banks
 Bitcoin investors may have to pay capital gains tax
 What industry expected when Modi government implemented GST
  The Finance Resolution And Deposit Insurance Bill, 2017

Public sector banks, asked to pay more advance tax
March, 09th 2010

The Centre has asked public sector insurance companies and banks to enhance their advance tax payments in the fourth quarter of this year.

Top bank and insurance company officials said that the government had individually asked all the pubic sector undertakings in the financial sector to make more payments this year. This is to avert the possibilities of fiscal slippages in the revised estimates for the current year.

Some PSU insurers and banks have already made the advance tax payments or are in the process of doing so ahead of the deadline. There are fears that there is likely to be some slippage in the revenue receipts estimates. This year, the revised estimate for corporate tax collections is Rs 2.55 lakh crore. However, till February the actual collection, according to the Central Board for Direct Taxes, was Rs 1.80 lakh crore. This implied that at least Rs 75,000 crore would have to be raised by the end of the current month or about Rs 24,000 crore more than what was raised in March 2009.

The sources said, in 2008-09 also the Government had faced a similar situation. This was reflected in the difference between final estimate that was Rs 2.13 lakh crore, and the revised estimate for the same period at Rs 2.22 lakh crore.

Although, for the fourth quarter, advance tax receipts are estimated at Rs 55,000 crore, it would still mean a shortfall, leading to a slippage in the revised fiscal deficit estimate of 6.7 per cent.With the oil import basket price at close to $79 a barrel, subsidy payout to the companies is also expected to mount.

Subsidy payouts are currently estimated at Rs 14,954 crore to the petroleum companies. Higher payouts and reduced revenue realisations would automatically translate into fiscal slippages.

Little reluctance

However, there is little reluctance from the PSU financial institutions against payment of higher taxes.

Last year, public sector banks had paid out close to Rs 20,000 crore as taxes to the government. This year's generosity on the part of banks stemmed from interest payouts from refunds. Interest on tax refunds is currently at 0.5 per cent for every month.

In the case of the insurers, the tax demand situation is slightly different. General insurers' stress on the balance sheet this year was largely on account of continuing high underwriting losses. In addition, unlike the previous years all of them have earned lower profits from investment trading.

Expenses and claims

The excess of expenses and claims over the premiums earned continues to remain red-lined this year as well at about 110 per cent. The bulk of the advance tax largesse is likely to come from Life Insurance Corporation of India. LIC last year paid out Rs 3,800 crore as taxes. Non-life insurers' pay-out was about Rs 300 crore.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-development

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