« Top Headlines » Open DEMAT Account in 24 hrs  Mock Test Papers Series - I & II for Students appearing in CA Foundation January 2027 Examination.  Income Tax Rules 2026: CBDT Introduces Revised Form 161 for Penalty Waiver, Clarifies Misreporting Categories and Taxpayer Relief  ITR Filing and Income Tax Audit Deadline Extended: 5 Critical Things Taxpayers Must Know  Filing Belated ITR for AY 2026-27? Know Which Losses You Can Carry Forward and Which You May Lose  CBDT Extends Tax Audit Report Deadline to October 21, ITR Filing Last Date to November 21 for AY 2026-27  CBDT Extends AY 2026-27 ITR Filing Deadline for Tax-Audit Cases: New Dates and Key Compliance Details  Foreign Assets Missing From Your ITR? Income Tax Department Opens One-Time Disclosure Window  Tax Audit Deadline September 30: Why AIS, TDS and GST Figures May Not Match Your ITR and What Taxpayers Should Do  Tax audit deadline September 30: Common mistakes taxpayers should avoid  Your ITR says ‘verified’, but the refund hasn’t arrived? 5 reasons why your money could be stuck  Missed the ITR Deadline but TDS Refund Is Due? Here’s How You Can Still Claim Your Money «  CBDT may limit exemption on capital gains... Income-tax on gross income or net income?... » Service tax hits excise mop-up August, 07th 2007 For the first time ever, Cenvat credit, utilised by companies to pay taxes, overshot net excise duty collections during fiscal 2006-07.   The finance ministry data show that Cenvat credit utilised by companies grew 34 per cent to Rs 1,28,698 crore in the last fiscal, while net excise duty collections (cash collections) rose 5.8 per cent to Rs 1,17,088 crore.   Service tax collections, which rose 62 per cent to Rs 37,482 crore in 2006-07, are projected to grow 34 per cent to Rs 50,200 crore in 2007-08. That means, companies paid their excise duties more by utilising tax credits available to them, rather than in actual cash.   Experts attribute the 6-7 per cent growth rate in excise collections in recent years to the high service tax that companies pay on business purchases or input services, which they follow up by claiming Cenvat credit. Besides service tax, area-based exemptions, liberalisation of small-scale industry scheme and exports are also adversely affecting central excise revenue.   Other factors contributing to higher Cenvat utilisation include availability of Cenvat credit against special additional Customs duty, dealers invoice and duty paid on capital goods.   Though gross excise collections (net collection and Cenvat utilisation) rose 19 per cent to Rs 2,45,786 crore in 2006-07, the same was not reflected in net excise duty collections (see chart) due to surge in service tax collections.   With an increasing number of business purchases coming under the service tax net, input taxes paid by manufacturers have gone up rapidly. More business-to-business transactions means more input taxes and more credit utilised, said Satya Poddar, partner, Ernst & Young.   He feels that a clearer picture will emerge if service tax collections and Cenvat credit utilisation trends are compared.   By increasing service tax on inputs, the Centre is not getting additional revenue. Instead of focusing on final consumption, the service tax now covered business deals, said Poddar.