CBDT has high expectations from the services sector
September, 28th 2010
The Central Board of Direct Taxes (CBDT) has high expectations from the services sector. It expects the sector to drive greater growth in advance tax collections in the October-December quarter. However as reports, underperforming sectors could pose an obstacle.
Balanced tax collection from India Inc will be crucial if the CBDT has to meet its annual collection target of Rs 4.30 lakh crore. The worry is that some of the traditionally strong contributors to tax revenues have been underperforming of late.
Shankar said, These are the two major contributants who contribute to whether we meet our targets or don't meet our targets. Banking, especially State Bank of India and other PSU banks. Oil is a very major contributor and I am really hoping that they will pull up their socks.
The board is also optimistic of an improved performance from the Mumbai circle. Remember, collections from this circle had dropped below the national average recently, drawing comment from the Finance Minister.
Shankar added, The current years collections will see an enhancement of revenues generated from Mumbai charge of 18% over last year. If that is so, I will be very happy.
The board is also betting on a strong showing from the tertiary sector to keep the ball rolling.
I especially have high expectations from the service sectorso lets seeI am hoping that the December installment will see a greater growth across the spectrum, Shankar said.
And if all goes as per plan, these higher revenues should help the Finance Minister boast of a significant decline in fiscal deficit when he presents his budget in February.