Indirect tax collections up 4.5% in April-June
Indirect tax mop up inched up by 4.5 percent in the April-June quarter of the current fiscal due to decline in custom duty and excise duty collections, reflecting slump in manufacturing activity.
New Delhi: Indirect tax mop up inched up by 4.5 percent in the April-June quarter of the current fiscal due to decline in custom duty and excise duty collections, reflecting slump in manufacturing activity.
Indirect tax collections comprising excise, customs and service tax stood at about Rs 1,13,570 crore in the first quarter of 2014-15 fiscal, as against Rs 1,08,639 crore in the corresponding period a year ago, the finance ministry said in release.
The growth at 4.5 percent is far less than 25 percent increase envisaged in the Budget for the full 2014-15 fiscal.
Excise collection contracted 0.2 percent during the quarter to over Rs 35,159 crore.
Customs mop up has declined by 3.1 percent to over Rs 39,549 crore during April-June period against Rs 40,796 crore in the same period a year ago.
Service tax collection, which has become a new focus area for revenue officials, grew by 19.1 percent to Rs 38,862 crore during the period, the statement said.
With an aim to widen the service tax net, the government had introduced the concept of negative list of taxation. As per it, all services except those in the negative list, are taxable.
The indirect tax collection target for 2014-15 fiscal stands at Rs 6.24 lakh crore.
Indirect tax collection in the month of June grew by 13.5 per cent to Rs 44,356 crore.
Excise duty mop up in month of June grew by 8.1 percent to Rs 14,666 crore, whereas custom duty collection grew by 6 percent to Rs 14,308 crore.
Service tax mop up in June grew by 27.9 percent to Rs 15,382 crore against Rs 12,025 crore in the same month last fiscal.