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: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: due date for vat payment :: VAT Audit :: form 3cd :: empanelment :: articles on VAT and GST in India :: cpt :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
« General »
 Filing ITR just got easier for salaried class with CBDT's one-page form
 Why consumers should welcome GST
 Retailers need to file single GST return every month
 Aadhaar is must for income tax returns if you have one; Here's how you can file it online
 Will it be a tax haven above the law?
 Your mutual fund investment tax efficient? Here are 3 steps to ensure utmost efficiency for your portfolio
 Finally a goods and services tax. But what lies ahead?
 Tax May Rise On Outbound M&As, Indian Mncs’ Investments
 Filing income tax return? Do remember to claim benefits on your reimbursements
 Banks will have a hard slog ahead to get GST-ready
 Clarification regarding applicability of Section 16 (1)(a) of the Companies Act. 2013 with reference to cases under corresponding provisions of Companies Act. 1956

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