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: VAT RATES :: ACCOUNTING STANDARD :: TDS :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: ACCOUNTING STANDARDS :: empanelment :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4%
 
 
« Indirect Tax »
 GST may lead to better operating profit margin for multiplex operators
 Indirect taxes must equal direct taxes
  Income Tax dept issues notices to ‘farmers’ claiming suspect agricultural income
 GST would match or be lower than the multiple indirect taxes on real estate
 Tax incidence under GST lower than current indirect taxes
 Here's the complete list of pre-GST discounts being offered by companies
 Applicability of Explanation 2 to Section 132B of the I.T. Act, 1961- reg.
 Here’s all you need to know about TDS and why it is deducted
 New indirect tax regime
 Income tax rates, tax-free limit to stay unchanged
 Revised tax reform bill to benefit consumers

Indirect tax takes a hit
July, 18th 2009

The excise duty and service tax rate cuts announced as part of the stimulus packages last fiscal have predictably dented the Centres indirect tax revenues in the first quarter this fiscal.

The Centres Customs duty revenues in April-June 2009 stood at Rs 17,858 crore (provisional), which is a 37-per cent decline over Rs 28,459 crore collected in the same period last fiscal. The decline in value of imports for the quarter under review could have also led to lower Customs duty collections. On the excise duty front, provisional data available with the Revenue Department put the collections for April-June 2009 at Rs 17,291 crore, a 31-per cent decline over Rs 24,978 crore collected in the first quarter last year.

The impact of the service tax rate cut in February has been somewhat subdued. Provisional data show service tax collections for the first quarter at Rs 9,543 crore (Rs 9,815 crore)

Proposal shot down

In the run-up to the full-fledged Budget for 2009-10, there was a big debate among policy makers if the excise duty and service tax rates should be rolled back to the pre-stimulus level.

While the top brass of the Revenue Department was in favour, the proposal was not taken to its logical conclusion as the Finance Minister decided that economic growth should be given a boost even if it meant higher fiscal deficit and lower revenue receipts. The Finance Ministry is betting on economic recovery in the next three-four months.

The Finance Secretary, Mr Ashok Chawla, has already indicated that the Government may review the tax rates only at the time of the next Budget in February 2010. He has virtually ruled out a mid-course correction this fiscal in terms of the tax rates.

After the third round of stimulus package in February 2009, the median Cenvat rate, that brings the bulk of excise revenues, was down to 8 per cent. It was 14 per cent in the first quarter last fiscal. According to the latest data , the Centres Customs duty revenues during 2008-09 stood at Rs 99,817 crore (provisional), lower than the collection of Rs 1,04,119 crore in the previous year.

Excise duty collections too saw a decline in 2008-09 at Rs 1,09,346 crore (provisional), lower than the collections of Rs 1,23,425 crore. Service tax collections in 2008-09 stood at Rs 60,716 crore (Rs 51,301 crore).

 

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Sitemap

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