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 STANDARD :: list of goods taxed at 4% :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: TDS :: VAT Audit :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India
 
 
« Direct Tax »
 Pune region tops in direct tax kitty growth
 RBI releases draft directions on hedging of commodity price
 Unexplained deposits in focus, taxmen ordered to go all out in the next three months
 Why India’s corporate tax rate should be cut
 Best ways to save tax under section 80C
 Govt may exceed direct tax collection target of FY18 Budget estimates
 CBDT relaxes MAT provisions for companies under corporate insolvency
 CBDT relaxes norms for MAT on firms facing insolvency
  Income-tax deduction from salaries during the financial year 2017-18 under section 192 of the Income-tax Act, 1961
 CBDT to appeal for revival of certain deregistered companies
 How the new tax regime fared in India these last 6 months

Direct tax collection off target as companies log tepid profit growth
April, 12th 2012

The government has fallen short of its direct tax collection target of Rs 5 lakh crore for FY12 even after revising the projections thrice as the economic slowdown impacted companies which reported a marginal increase in profits in the fourth quarter of the last fiscal.

The all-India tax collection, as on April 11, was below Rs 4.95 lakh crore, according to figures available with the income-tax department, senior officials said. The revenue department had revised the target twice last fiscal, revising it upwards from the original target of Rs 5.32 lakh crore to Rs 5.80 lakh crore during the course of the year, only to rework it to Rs 5 lakh crore towards the close of FY12.

The original target of Rs 5.32 lakh crore was nearly 19% higher than the collection of Rs 4.48 lakh crore in FY11. Initially, the government had pegged the target high hoping to keep the fiscal deficit at below 5% of the GDP in 2011-12. The government has projected a fiscal deficit of 5.1% in 2011-12.

CBDT chairman was not available for comment as he was travelling abroad. The chief commissioner of income-tax, Mumbai, NP Singh, declined to comment on the shortfall. "I cannot give a reason for the shortfall," he said.

However, senior officers of the I-T department are of the view that the government should be reasonable in fixing the target, since tax collection is linked to the state of the economy and the growth in national income.

Knowing that the odds were against it, the CBDT had issued a veiled warning to its chief commissioners saying that their transfers and promotions would be linked to tax collections in their respective jurisdictions. But all that has not worked.

Considering the tax collected by April 11 and measured against the revised target of Rs 5.80 lakh crore mid-way through 2011, the shortfall in collections is a whopping Rs 85,000 crore. The last time there was a substantial shortfall was in 2008-09 when the economy was impacted because of the global financial crisis. That year, the shortfall was at Rs 60,000 crore while the target was nearly Rs 4 lakh crore.

The revenue authorities were expecting to meet at least the original target of Rs 5.32 lakh crore, hoping to make up in the last quarter of FY12 with the fourth installment of advance tax payments due on March 15. But most companies have reported only a marginal increase.

However, foreign banks were an exception, reporting a substantially higher profit than last year. The three state-owned oil companies did not report any profits in the last quarter. The Supreme Court judgement in the Vodafone case proved to be another setback that deprived the I-T department of nearly Rs 20,000 crore by way of taxing cross-border acquisitions involving Indian companies.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Customer relationship management software CRM software Operational CRM Collaborative CRM

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