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: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: articles on VAT and GST in India :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: Central Excise rule to resale the machines to a new company :: TDS :: due date for vat payment :: form 3cd :: VAT RATES :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: VAT Audit
 
 
« General »
 Tax breather for foreign investors: All you need to know
 What the increase in tax collections does not tell us about Indian economy post demonetisation
 India’s crazy retrospective tax on foreign funds will tarnish country’s reputation
 How tax related, PAN grievances can be resolved through E-Nivaran
 Tackling income tax exemptions for equities and agriculture
 Amfi wants tax benefits for retirement plans
 Top five factors which could chart market direction in the coming week
 Tax rate hikes boost shadow economy
 Tax mop-up may decline in new amnesty scheme
 Weeks before Budget, Finance Minister Arun Jaitley lists out benefit of low tax rates
 Second home loan tax benefits

Indias tax-GDP ratio still less than half OECDs
April, 21st 2011

The Centre's tax collection for 2010-11 has reportedly exceeded the revised estimates by about Rs 12,000 crore to hit Rs 7.92 lakh crore.

This is good news for fiscal management and on the economy's performance. Corporate tax revenues , for instance, consistently grew at 20% through the year. Excise duty grew at well over 35%, marking an outstanding growth after years of single-digit rise.

Although in part, the robust increase in excise was due to the withdrawal of the fiscal stimulus - the duty was increased by two percentage points effective April 2010- positive consumer sentiment has also helped drive up demand for manufactured items. However, it was the customs collection that recorded the most stunning rise, climbing over 60% thanks to a flare-up in crude oil prices.

Such vigorous growth in revenues is unlikely to be sustained in the current fiscal, particularly when the economy is beginning to slow. Growth is bound to be negatively affected by the continued tightening by the Reserve Bank of India in its bid to calm inflationary pressures, high cost of capital would force companies to postpone investment and also dampen consumer sentiment.

Customs collection too may experience a decline if the government were to lower duty on crude in a bid to prevent price shocks for the domestic consumers. Despite the robust increase in tax collection in 2010-11, the Centre's collection accounts for just about 10% of GDP. Together with states' collection, tax revenues of the government account for just about 16% of GDP.

That compares very poorly with the tax-GDP ratios of developed nations. For instance, the tax-GDP ratio for the UK is 34.3%, for Germany 37% and about 24%for the US. The nation needs to urgently continue reforms of its taxation regime to not only widen the net, so as to bring more people and businesses into it, but also to reduce evasions.

Implementation of the goods and services tax is one reform that the Centre and states must achieve a consensus on at the earliest. Information technology-enabled intelligence is the key to collate economic information and convert it into dogged tax collection.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

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