The first 6 months of India’s total tax collections is up by 22.10 percent to rupees 4,25,712 Crore despite decline in the September month excise collections. The decline in the month of September suggests a slowdown in manufacturing.The April to September data showed a total increase in both the direct & indirect taxes, excise & customs collections. Though there has been a drop in all the tax collection in the month of September. During this month the custom duty fell by 10.9 percent to rupees 10126 while there was a marginal drop of 0.3 percent in central excise collection.
The decrease in collections of excise and customs can be attributed to both deduction in duties of petroleum and a slowdown in manufacturing activities as indicated by the latest IIP (Index of Industrial Production) figures. The service sector was the major contributor in the development of the country’s economy. Major services firms of India in the telecom and banking sector like Bharti Airtel, SBI were among the tophundred advance tax payers in the first six month of this year. The gross DI (direct tax) which constitutes of personal income tax and corporate tax collection was up by 23 percent to rupees 2,57,042 crore as compared to 2,08,971 crore, during the same period last fiscal.
From April to September net direct tax collections excluding refunds were rupees 1,94,812 Cr an increase from rupees 1,81,758 Cr during the same period last fiscal. On the other hand Indirect tax collection in April to September stood at rupees 1,68,670 Cr an increase of 28.8 percent from Rs 1,39,652 Cr during the last fiscal year.
“Bell the bull says: Improved IIP figures will improve all taxes collection in the next quarter.”