Sharp rise in service tax
APART FROM maintaining rise in tax collection and adhering to tight fiscal discipline, the State Government has also registered a significant improvement in taxes collected by various agencies of the Union Government and transferred to the State Government.india Updated: Nov 16, 2006 16:00 IST
APART FROM maintaining rise in tax collection and adhering to tight fiscal discipline, the State Government has also registered a significant improvement in taxes collected by various agencies of the Union Government and transferred to the State Government.
Among taxes collected by various departments of the Union Government, service tax registered a significant increase of 73 per cent in 2005-06.
Against the total share of net proceeds of the Union Government of Rs 5079.74 crore in 2004-05, the State Government received
Rs 6342.23 crore in 2005-06 thereby maintaining a healthy growth of about 25 per cent. In monetary terms, the State received Rs 1262.49 crore higher than what it had received as its share from the Union Government.
The tax growth bears testimony to rise in paying capacity of the people in the State and the important role the Union Government played by providing much-needed resources to the State Government.
Sources in Income Tax and Central Excise claim that the trend is likely to continue in the current year and the share of State in central taxes will further go up.
Central departments — Central Excise, Customs and Income Tax collected taxes like corporation tax, Income Tax, customs, central excise duties, service tax and transferred its share to the State Government.
According to financial accounts for 2005-06 presented in the State Assembly recently, all major taxes registered a major growth in the last fiscal. According to the Comptroller Auditor General of India’s report on finance accounts, the share of service tax collection in the State registered an impressive growth of 73 per cent.
Against Rs 269.77 crore transferred to the State Government in 2004-05 under the head of service tax, the State Government received Rs 467.60 crore in the last fiscal. As far as transfer of Corporation Tax is concerned, against the net proceed of Rs 1444.89 crore in 2004-05, the Centre transferred Rs 1750.87 crore as the share of State Government under the corporation tax. In this segment, which is associated with industry, the State has registered a growth of 21 per cent.
Similarly, proceeds of Income Tax also witnessed a growth of 33 per cent. Against the share of Rs 930.17 crore received in 2004-05 for Income Tax collected in the State, the Madhya Pradesh Government received Rs 1234.23 crore during last fiscal thereby registering an impressive growth of 33 per cent.
Proceeds of customs and central excise duties also went up by 21 and 16.5 per cent respectively. While transfer of tax collected by customs, which was Rs 1019.57 crore in 2004-05, increased to Rs 1236.27 crore in 2005-06; net proceed of union excise duties increased by Rs 237.64 crore. Against the State’s share of Rs 1412.17 crore in 2004-05, the State received Rs 1649.81 crore in 2005-06.