Even as industrial production is slowing and service sector growth is stagnating, excise duty and service tax collections are set to cross the Budget Estimates for 2012-13. This is significant from the point of narrowing the fiscal deficit.
“Overall, on the indirect tax front, we are likely to get Rs 2,000-2,500 crore more than the revised target, while the direct tax collection is estimated to be near the revised target,” a senior Revenue Department official told Business Line . Indirect taxes include Customs duties, Central excise and service tax, while direct taxes include personal income tax, corporate tax, wealth tax and securities transaction tax.
Final picture
The official said the final picture will emerge after April 10 as payments continue to come in till that date.
However, another Revenue Department official said that, as on Wednesday, the excise duty collection for 2012-13 had exceeded the lowered revised estimate by over Rs 22,500 crore and had even slightly exceeded the original Budget Estimate.
At the same time service tax collection is near the higher Revised Estimate.
However, it is the Customs duty mop-up that will directly impact the overall trend. Overall, the Customs duty collection will restrict the total indirect tax collection growth to Rs 2,000-2,500 crore.
Till date, direct tax collection is nearly Rs 5,000 crore short of the target. But going by the daily trend, estimates are it will touch the revised target, the official added.
AWARENESS CAMPAIGNS
He credited this development on the direct tax front to the Department’s continuous campaign and notices to tax-payers.
Apart from issuing warnings from time to time, the Income-Tax Department has issued over one lakh notices to those who had not filed tax returns.
This has prompted over 14 lakh people to file returns, paying tax dues with interest. Till date, a total of 2.15 crore returns had been filed, against 1.64 crore in 2011-12.