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Indirect tax collection is likely to exceed by about Rs 40,000 crore this fiscal that will help the government meet the budgetary target of revenue collection for the first time in five years
 This will also make up for the expected shortfall in the <keyword id="45697" type="COMPANY" weightage="20" keywordseo="Direct-Tax">direct tax</keyword> collections, Revenue Secretary Hasmukh Adhia said on Wednesday Of the Rs 14.49 lakh crore budgeted tax revenue target for 2015-16, Rs 7.97 lakh crore was estimated to come from direct taxes (corporate and <keyword id="6354751" type="COMPANY" weightage="20" keywordseo="Income-Tax">income tax</keyword>) and another Rs 6.47 lakh crore from indirect taxes (customs, excise and <keyword id="6355686" type="COMPANY" weightage="20" keywordseo="Service-tax">service tax</keyword>) 

	"We are likely to exceed the collection in indirect tax by about Rs 40,000 crore in the current year. On the whole, we are very optimistic about achieving annual tax revenue target for the year," Adhia said
 

	The government invariably falls short of tax collection target and had last time exceeded the budgeted target in 2011 fiscal
 

	In the first 10 months of the current fiscal, indirect tax mop up of Rs 5.44 lakh crore was 88 per cent of the full year target. Besides, direct tax collection of Rs 5.22 lakh crore was 65 per cent of target for 2015-16
 

	"Looking at the trend, it appears that as far as indirect tax collections are concerned, the government may get more than Rs 40,000 crore over and above the BE (budget estimate) target for indirect taxes for 2015-16 while there might be an equal amount of shortfall in direct tax collections
 

	"However, both direct and indirect tax collections put together, we expect to meet the annual BE target of Revenue collections for the current year without any shortfall," Adhia said in a statement
 The tax revenue trends, he said, supports the latest figures of <keyword id="35050" type="CITY" weightage="20" keywordseo="gdp">GDP</keyword> growth rate The CSO has projected <keyword id="6356076" type="UNKNOWN" weightage="20" keywordseo="indian-economy">Indian economy</keyword> to grow by 7.6 per cent in the current fiscal, the fastest pace in five year.

Spurt in indirect tax mop up to help govt meet FY16 target

As many as 74 drugs, including life saving ones used for treating cancer and HIV, will see sharp rise in prices as the government has withdrawn customs duty exemption on their imports.
 The Central Board of Excise and Customs (<keyword id="117272" type="ORGANIZATION" weightage="20" keywordseo="CBEC">CBEC</keyword>) last week issued a notification withdrawing exemption of levy of basic customs duty on as many as 74 drugs. The medicines on which customs duty will now be imposed include the ones used for treating kidney stones, cancer chemotherapy and radiotherapy, life-threatening heart rhythm disorders, <keyword id="6359018" type="UNKNOWN" weightage="20" keywordseo="diabetes">diabetes</keyword>, Parkinson's disease, bone diseases, antibiotic to treat infections. Besides, drugs used for bacterial infections, leukemia, anesthetic medication, human immunodeficiency virus (HIV) or <keyword id="65371" type="PERSON" weightage="20" keywordseo="hepatitis-B">hepatitis B</keyword> virus cells, allergies, <keyword id="16098" type="UNKNOWN" weightage="20" keywordseo="arthritis">arthritis</keyword>, lupus and ulcerative colitis might also see spurt in prices. 

	Also drugs used in blood dilating medicine or for treating menopause, glaucoma, anogenital warts, poisoning by a chemical or pesticide, growth failure in children and adults who lack natural growth hormone would also attract customs duty.
 "The withdrawal of exemption from basic customs duty for certain drugs and medicines including life-saving drugs is intended to provide protection to the domestic manufacturing industry and enhance the attractiveness of make in India initiative," <keyword id="50041" type="CITY" weightage="20" keywordseo="KPMG">KPMG</keyword> India Partner and Head of Indirect Tax Sachin Menon said. "An increase has also been made in the customs duty rates of certain life saving drugs such as abciximab, anti-rabies immunoglobin, FSH, procarbazine and saquinavir to 35 per cent," <keyword id="6358918" type="PERSON" weightage="20" keywordseo="Deloitte">Deloitte</keyword> in India Senior Director MS Mani said. 

	These changes signify the intention of the government to promote domestic manufacture of these items as imports would now become more expensive, Mani said.
 

	Menon said the move seems to be in line with the government's objective to rationalise the duty exemptions. 
	 
	(Image credit: PTI)

Indirect Tax: Govt eases duty on imported goods for exhibition

The concept of <keyword id="6354678" type="DEFINITION" weightage="20" keywordseo="Indirect-Tax">indirect tax</keyword> has been introduced in India in order to reduce the burden on the tax payers. In other words, we can say that the burden of these taxes are borne by someone else other than the taxpayer. What is Indirect Tax? As the name indicates, indirect tax is levied on goods and services that carry a higher price. Some of the typical examples of indirect <keyword id="707923" type="PERSON" weightage="20" keywordseo="taxes-in-India">taxes in India</keyword> include service tax, value added tax (<keyword id="6370857" type="UNKNOWN" weightage="20" keywordseo="VAT">VAT</keyword>), central excise and customs duty. Different kinds of indirect taxes levied in India Service tax Service tax is applicable to be paid by the entities that provide services like consulting, legal assistance and other such services. This kind of tax is collected from the recipients of the services and paid to the Central Government. Starting from June 1, 2016, service tax was fixed at 14% along with Swacch Bharat Cess (0.5%) and Krishi Kalyan Cess (0.5%). Thus the resulting rate of service tax chargeable is 15%. Small service providers who do not make more than Rs 10 Lakhs per annum are exempted from paying the service tax in India. <keyword id="6356916" type="UNKNOWN" weightage="20" keywordseo="excise-duty">Excise duty</keyword> Excise duty is applied on all kinds of goods that are manufactured in India. This kind of indirect tax needs to be paid by the manufacturers and then eventually passed on to the end buyers. Excise duty is levied by the Central Government in India. This tax works based on the provisions found in the Central Excise Act, 1944. VAT Value Added Tax (VAT) is levied on the sale of goods that are movable within the nation. VAT is charged during all stages of production and distribution channels that include the instance of value addition. The State Governments levy this tax under Entry 54 of the State List. Customs duty Customs duty is a kind of indirect tax that is applicable to goods imported from other countries. This is payable towards getting some goods inside the country. In some cases, this kind of tax is also levied on exported goods. The Customs Act, 1962 contains the procedures and regulations on how the customs duty must be levied, how it must be collected and the procedures of imports and exports, penalties, offenses and prohibitions. Securities Transaction Tax (STT) Securities transaction tax is levied while purchasing or selling stocks through the Indian stock exchange. Introduced in the year 2004, STT is applicable in cases of shares, mutual funds, and future and options transactions. STT was levied in order to bring down the short-term capital gains tax and eradicate the long-term capital gains tax. Stamp duty This kind of indirect tax is charged by the state government while movable and immovable properties are transferred within their jurisdiction. Also, stamp duty is made compulsory on all kinds of legal documents. The rates of stamp duty varies from one state to another. <keyword id="62084" type="ORGANIZATION" weightage="20" keywordseo="Entertainment-tax">Entertainment tax</keyword> Entertainment tax is yet another kind of indirect tax levied by the state government on the different kinds of transactions connected to entertainment. Some examples to entertainment taxes are movie tickets, stage shows, amusement parks, sports activities, adventures, video game arcades and others.

Here’s all you need to know about Indirect Tax in India

Ahead of the annual budget presentation, an India-centric top US strategic and business advocacy group has urged Union Finance Minister <keyword id="129243" type="General" weightage="50" keywordseo="nirmala-sitharaman" source="Orion">Nirmala Sitharaman</keyword> to simplify and rationalise direct and indirect taxation system in <keyword id="3658" type="General" weightage="100" keywordseo="india" source="Orion">India</keyword>, a move it believes would increase the confidence of global investors and yield greater foreign direct investment. Direct taxes can be in the form of income tax, capital gains tax or securities transaction tax, while indirect taxes such as GST, Customs Duty or VAT are levied on all end-consumers to buy any goods or services. "Rationalise corporate tax rates for foreign companies," said the US-India Strategic and Partnership Forum (<keyword id="4839889" type="General" weightage="80" keywordseo="usispf" source="Orion">USISPF</keyword>) in its submission to the finance ministry ahead of the annual budget presentations on February 1. It said that the rate for foreign companies, including banks be reduced to bring parity and sought to rationalise tax for new manufacturing companies. <keyword id="16275339" type="General" weightage="50" keywordseo="urging-india" source="Orion">Urging India</keyword> to simplify capital gain tax reforms, USISPF sought harmonising holding periods and rates of different instruments. "Reiterate India's commitment to the global tax deal," it said and urged the Union Finance Minister to extend the concessional tax regime to Foreign Portfolio Investment (FPI) from investment in securities. USISPF has also suggested tax incentives to specific sectors like renewable energy and R&amp;D investment in the health sector. Among the Forum's recommendations include advocating for a stable and predictable tax environment, improving the ease of doing business environment, rationalisation of the cost of doing business, and rationalisation of tax rates and tariffs. On indirect taxes, the USISPF sought clarification on customs duty exemptions provided to oil and natural gas companies, reduction in customs duty rates for x-ray machines from 10 per cent to 7.5 per cent and providing customs duty exemption on all items imported by specified research and development units. USISPF urged the finance minister to roll back the customs duty increase on nutritional products considering the importance and significance of the product and encourage the availability of scientifically designed nutritional food in India. Among its recommendations on customs tariffs and duties and customs, processes include addressing ambiguities in the customs tariff act on telecom products, an extension of concessional customs duty to advanced biofuel projects and strengthening the process on the ground with respect to trade facilitation schemes like CAROTAR and Faceless Assessment. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/adani-group-companies-lose-3-22-lakh-crore-in-market-value-amidst-tussle-with-hindenburg-research/articleshow/97374612.cms">Adani Group companies lose ₹3.22 lakh crore in market value amidst tussle with Hindenburg Research</a> <a href="https://www.businessinsider.in/business/corporates/news/adani-enterprises-20000-crore-fpo-now-open-analysts-maintain-cautious-optimism/articleshow/97369358.cms">Adani Enterprises’ ₹20,000 crore FPO now open, analysts maintain cautious optimism</a> <a href="https://www.businessinsider.in/business/corporates/news/tata-motors-in-top-gear-reports-net-profit-of-2958-crore-in-q3-its-first-after-seven-quarters/articleshow/97319081.cms">Tata Motors In Top Gear: Reports net profit of ₹2,958 crore in Q3, its first after seven quarters</a>

US industry urges FM to rationalise, simplify direct and indirect taxes in India

(Image source- Reuters) <ul><li><keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> has said the government is mulling the possibility of merging two tax rates on standard items, which are 12% and 18%, into a single rate of 15%. </li><li>At present, the <keyword id="6354679" type="DEFINITION" weightage="20" keywordseo="gst">GST</keyword> regime has four separate <keyword id="293369" type="ORGANIZATION" weightage="20" keywordseo="SLABS">slabs</keyword> - 5%, 12%, 18% and 28%, the last of which is reportedly on its way out and will only be levied on “luxury and sin goods” in the future. </li><li>The GST regime has not resulted in the accumulation of increased tax revenues as hoped. The average monthly tax collected this year is around ₹971 billion, which is less than the ₹1 trillion the government was targeting. </li></ul>Between the demonetisation initiative and the ostensibly botched implementation of the Goods and Services Tax (GST) regime, the <keyword id="6354642" type="PERSON" weightage="20" keywordseo="Modi">Modi</keyword> administration’s most strident critics have had plenty of fodder. However, in a Facebook post entitled “<a href="https://www.facebook.com/notes/arun-jaitley/eighteen-months-of-the-gst/932255003629715/">Eighteen Months of the GST</a>”, India’s finance minister, Arun Jaitley, looked to dispel some oft-levied gripes against the policy, which includes a claim that the 28% slab is too high. Jaitley explained that prior to the reform’s implementation, the value-added-tax regime levied a 31% indirect rate on most items in addition to state-specific cesses and excise duties. The prior taxation system included as many as 17 different rates on the same product. He also said that the government was mulling the possibility of merging the two tax rates on standard items, which are 12% and 18%, into a single rate of 15% in order to make the enforcement and compliance of the taxation system simpler. This is part of the “one nation, one tax” approach envisioned under the reform. At present, the GST regime has four separate slabs - 5%, 12%, 18% and 28%. At the time, the government justified the multiple rate system by saying it ensured that the <keyword id="6354678" type="DEFINITION" weightage="20" keywordseo="Indirect-Tax">indirect tax</keyword> rate on an item did not fall significantly. The 28% slab is also reportedly on its way out, and will only be levied on “luxury and sin goods” like large televisions and cigarettes. Only 27 items remain in the highest slab, a drastic decline from the 228 items when the GST was introduced in July 2017. Jaitley’s comments followed the revision of rates this past weekend. The rates <a href="https://www.livemint.com/Politics/7tlDmqPtOqmCfhuhBDm1AN/GST-Council-cuts-tax-rate-on-22-items-seven-items-go-out-of.html">on 22 items </a>were reduced, a nice sweetener ahead of national elections next year. Seven commodities including cameras and farming implements, were taken off the 28% slab. Cement and auto parts were supposed to be taken off the 28% slab as well, but the government decided against this for the time being as the resulting decline in tax revenues would be too much to stomach. Despite its suggested benefits, the GST regime has not resulted in the accumulation of increased tax revenues as hoped. While the average monthly tax collected has increased to <a href="https://economictimes.indiatimes.com/news/economy/policy/sun-is-setting-on-the-28-gst-slab-arun-jaitley/articleshow/67226303.cms">₹971 billion</a> in the financial year so far compared to ₹897 billion in 2017-18, this is significantly less than the ₹1 trillion the government was targeting. In a radio interview yesterday, Jaitley said that the central government was having a difficult time meeting its collection targets owing to lower contributions from the <a href="https://www.livemint.com/Politics/ICGM59ixWTfZ3GNEppC0FN/Stress-in-telecom-aviation-and-real-estate-affecting-revenu.html">telecom and airline sectors</a>, both of which feature a high level of price competition between incumbents resulting in lower prices. SEE ALSO: <a href="https://www.businessinsider.in/heres-how-the-proposed-changes-to-gst-could-affect-businesses/articleshow/64935707.cms">Here’s how the proposed changes to GST could affect businesses</a> <a href="https://www.businessinsider.in/complaints-rise-against-indian-companies-that-havent-passed-on-the-benefits-of-lower-gst-to-consumers-report/articleshow/66822554.cms">Complaints rise against Indian companies that haven’t passed on the benefits of lower GST to consumers: Report</a>

India’s Finance Minister moots the possibility of a single tax rate on standard items amid continued criticism of the government’s GST regime

The government has extended the deadline for filing <keyword id="6354679" type="General" weightage="100" keywordseo="gst" source="Orion">GST</keyword> returns for the month of September by a day to October 21, the CBIC said on Friday. On Thursday, taxpayers faced a slow functioning of the GST portal, which was the last date for filing monthly GST returns for some taxpayers. Following that, the <keyword id="12579914" type="General" weightage="50" keywordseo="central-board-of-indirect-taxes-and" source="Orion">Central Board of Indirect Taxes and</keyword> <keyword id="6360806" type="General" weightage="50" keywordseo="customs" source="Orion">Customs</keyword> (CBIC) said that an extension of the due date was being considered. "The GST Implementation Committee of GST Council has approved the extension of the due date of filing GSTR-3B return for the month of September 2022, for the monthly filers, from 20th October 2022 to 21st October 2022," the CBIC tweeted on Friday. Monthly return and tax payment form GSTR-3B is filed in a staggered manner between the 20th, 22nd, and 24th of each month by taxpayers in different states.GST Network (GSTN) provides the technology backend for running <keyword id="6359833" type="General" weightage="50" keywordseo="goods-and-services-tax" source="Orion">Goods and Services Tax</keyword> (GST). <keyword id="6354512" type="General" weightage="50" keywordseo="infosys" source="Orion">Infosys</keyword> is the service provider for GSTN. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/rupee-falls-12-paise-to-82-91-against-us-dollar/articleshow/95003236.cms">Rupee falls 12 paise to 82.91 against US dollar</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/if-you-are-looking-to-add-sparkle-to-your-portfolio-this-diwali-here-are-ten-stocks-for-samvat-2079/articleshow/95007121.cms">If you are looking to add sparkle to your portfolio this Diwali, here are ten stocks for Samvat 2079</a>

Govt extends deadline for filing September GST return till Oct 21

Lot of money in <a href="http://www.businessinsider.in/searchresult.cms?query=service+tax+refunds">service tax refunds</a> is stuck, hurting the cash flow of companies. But, the issue won’t be there any longer as the government is going to expedite refunds. 
 
The government wants to start afresh for <a href="https://www.google.co.in/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=3&amp;cad=rja&amp;uact=8&amp;ved=0CCgQFjACahUKEwjOiPvLqsHIAhVIjo4KHVRIAuY&amp;url=http%3A%2F%2Fwww.businessinsider.in%2FGST-Means-India-Is-Keen-On-Adopting-Global-Practices%2Farticleshow%2F45757825.cms&amp;usg=AF">goods and services tax</a>. 
 For this, the apex indirect taxes body, <keyword id="6361265" type="ORGANIZATION" weightage="20" keywordseo="Central-Board-of-Excise-and-Customs">Central Board of Excise and Customs</keyword>, is also working on an overhaul of the refund mechanism for the <a href="http://www.businessinsider.in/searchresult.cms?query=BPO">BPO</a>, IT and ITES sectors. 
 
Reportedly, indirect tax collections shot up 35.8% to Rs 3.24 lakh crore in the first six months of the current financial year. 
 
This is over 50% of the budgeted estimate as the government expected Rs 6.47 lakh crore collections from indirect taxes in 2015-16. 
 
When <a href="http://www.businessinsider.in/searchresult.cms?query=Narendra+Modi">Narendra Modi-led government</a> stormed into power, it had promised a stable tax regime and keeping back refunds was against that spirit. 
 The <keyword id="888634" type="UNKNOWN" weightage="20" keywordseo="Service-tax-refunds">service tax refunds</keyword> that are stuck are hurting the cash flow of companies. 
 
Exporters can claim refunds on duties paid on imported inputs used to manufacture goods. 
 
"Very encouraging move...This would aid liquidity for exporters and thereby their business," said Ajay Sahai, Director General and CEO of the Federation of Indian Export Organisations. 
 
(Image: Indiatimes)

You Searched For "Indirect Tax" and got 7 results

Spurt in indirect tax mop up to help govt meet FY16 target

BI India Bureau

Indirect Tax: Govt eases duty on imported goods for exhibition

BI India Bureau

Here’s all you need to know about Indirect Tax in India

BI India Bureau

US industry urges FM to rationalise, simplify direct and indirect taxes in India

PTI

India’s Finance Minister moots the possibility of a single tax rate on standard items amid continued criticism of the government’s GST regime

Dilsher Dhillon

Govt extends deadline for filing September GST return till Oct 21

PTI

Government wants clean slate for GST, to end pending service tax refunds

BI India Bureau

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