Net direct tax collection, during April-September 2011, stood at Rs 1,94,812 crore as against Rs 1,81,758 crore during the same period last year, clocking a growth of a mere 7 per cent and endorsing fears of an imminent slowdown in the economy.
The lower growth in tax mop was, according to experts, due to high refunds and low advance tax collections in the second quarter.
While, indirect tax collections registered a growth of 20.8 per cent during the first six months period, the latest figure of September show a mere rise of 1.2 per cent rise on account of a decline of almost 11 per cent in customs duty collection.
Experts say the trend clearly indicates a moderation in economic activities in the country.
“Even though the advance tax was more in the first quarter, there has been some moderation in the expectations. The corporates are not as bullish as they were in Q1 as is apparent from the direct tax numbers. The other thing is that lot of tax collection is coming from tax deducted at source (TDS). TDS collection continues to be high. If the situation continues then we are going to see net collection down next year, too, due to high tax refunds,” Rahul Garg, executive director, PricewaterhouseCoopers, said. Advance tax collection for the top 100 companies was up 14 per cent during the first quarter while it was up just 9.9 per cent in the second quarter of the current fiscal.
Gross direct tax collection, however, rose by 23 per cent to Rs 2,57,042 crore during the first six months of 2011-12 as against Rs 2,08,971 crore in the same period last year. Refunds during the first half stood at Rs 62,000 crore.
Net corporate tax collections were up a mere 3 per cent at Rs 1.26 lakh crore during the six-month period. However, the gross collection of corporate taxes was Rs 1,75,360 crore in the first half of the fiscal, up 23.17 per cent from Rs 1,42,368 lakh crore.
Personal income tax collection was up 22.65 per cent to Rs 81,353 crore, against Rs 66,330 crore last year. The government expects to mop-up Rs 5.32 lakh crore from direct taxes.
As regard indirect taxes — customs, service tax and central excise — the collections were up just 1.2 per cent during the month of September. For the month of September, collections from customs duty were down 10.9 per cent