Indirect tax collections up 3.9% in April-July

Indirect tax collections up 3.9% in April-July

Indirect tax collections up 3.9% in April-July

 Indirect tax mop up inched up by 3.9 per cent in the April-July 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 1.54 lakh crore in the first four months of 2014-15 fiscal, as against Rs 1.48 lakh crore in the corresponding period a year ago, the finance ministry said in a statement.

The growth at 3.9 per cent is far less than 25 per cent annual increase envisaged in the Budget for the full 2014-15 fiscal.

Excise collection contracted 0.4 per cent during the quarter to over Rs 48,195 crore. Customs mop up has declined by 2.2 per cent to over Rs 55,305 crore during April-July period against Rs 56,526 crore in the same period a year ago.

Service tax collection, which has become a new focus area for revenue officials, grew by 16.4 per cent to Rs 50,850 crore during the period, the official 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 July grew by 4.9 per cent to Rs 41,890 crore.Excise duty mop up in month of July grew by 7.5 per cent to Rs 14,127 crore, whereas custom duty collection grew by 0.2 per cent to Rs 15,756 crore. Service tax mop up in July grew by 8.4 per cent to Rs 12,007 crore against Rs 11,076 crore in the same month last fiscal.