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: list of goods taxed at 4% :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: form 3cd :: Central Excise rule to resale the machines to a new company :: TDS :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES
Indirect Tax »
 CBEC rechristened Central Board of Indirect Taxes and Customs
 Income tax department to challenge ITAT relief to Cairn Energy in HC
 5 crucial ways how doing business will be different under GST
 What is the lowdown on the Goods and Services Tax
 Ineligible Input Tax Credit Under Gst Regime
 What is GST, how is it different from now: Decoding the indirect tax regime
 Indirect tax collection can fall short of FY’17 target
 GST in last lap: What's in it for businesses, firms and most importantly, you?
 Indirect tax collection: All you want to know about stuck cases and rejected appeals
 Government achieves revised tax collection target
 Keep indirect taxes 'low, affordable' under GST

Indirect tax collection to exceed target
May, 31st 2008

The indirect tax collections are likely to exceed revised budget estimates. However, excise duty, despite strong manufacturing growth, would exceed the budget target by a modest amount. Better compliance remains high on the agenda of Central Board of Excise and Customs (CBEC). P C Jha, who has recently taken over as chairman of CBEC, talks about the indirect tax regime.

Excise collections have been growing at a slow pace largely because of exemptions and evasion. How are you planning to improve collections?

The final indirect tax figures for 2007-08 are still being computed as service tax collection figures are still coming in. In the case of customs we have exceeded the budget estimates by over Rs 3,000 crore. In excise, there is a shortfall. Overall, we would exceed the revised estimates for indirect tax collection, that is Rs 2,78,078 crore.

We want to encourage voluntary compliance so that taxpayers may have least contact with the department. Our entire system is based on trust because there is a large number of assessees which is willing to pay. For the honest taxpayer, the focus is on making the system more friendly and efficient. For the evaders there are penal provisions and deterrent measures.

We have taken various steps to ensure that exemption schemes are not misused. In the case of J&K, North-East and Kutch, where excise benefits are delivered through refunds, we have made it mandatory that all refunds would be based on actual value addition. In the case of Uttarakhand and Himachal, where there is a blanket exemption, the benefit will be available only to genuine production activity. We would also be improving the audit and anti-evasion system further to take care of the offenders.

The service tax collection in 2007-08 has not grown the way it did in 2006-07. Also some services such as telecom have shown lower growth in collections despite strong sectoral growth.

That fiscal 2006-07 was spectacular as the tax rate had been increased from 10% to 12%. In that sense the lower growth in 2007-08 is not comparable with that of the previous year. Nonetheless, we have done well and would exceed revised estimates. Telecom has shown negative growth primarily because of the large claims of CenVat credit by the industry on duty paid on capital goods. The department carried out extensive audits and they have taken action where some misuse was found.

 Is there a scope of expanding the service-tax net further? Is a separate service tax Act on the anvil?

The pace of expansion of service tax has been faster than any other tax. In 1994, when we started taxing services, only three services were taxed. The rate of taxation was 5% and the number of assessees 3,943 and total collection was only Rs 410 crore. Now, it has reached the level where 100 services are under tax net. Six more services would be brought under the service tax regime this year. The total collection in 2008-09 is expected to be over Rs 64,000 crore and the number of active assessees over 5.5 lakh.

Every year we carry out an exercise to identify services which have the potential of being covered under service tax. In 14 years from three services, we have gone to 106; it is a constant endeavour. At present the service tax is governed by the Finance Act, 1994. Since a comprehensive goods and services tax (GST) would come in soon, in 2010, there is no need for a separate service tax Act.

The department's talent pool is shrinking with many people leaving for the private sector. How big is the exodus?

Firstly, exodus is not a big problem. We are creating a separate directorate for human resource development to take care of important personal matters. We have already got additional manpower of 4,000. The Sixth Pay Commission award should also have a positive impact.

What is the reform agenda for the department?

The main effort would be to make the revenue administration more efficient and taxpayer friendly. Making the system more responsive for redressing grievance of both taxpayers and the staff would be another priority in area. The emphasis would be on not just achieving but exceeding the 2008-09 budget estimates for collection of indirect tax revenue which is Rs 3,20,000 crore.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Outsourcing Company Offshore Software Outsourcing Software Outsourcing Company India Offshore Outsourcing Company India Software BPO Software Business Process Outsourcing Software Outsourcing India Offsho

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