Gross direct tax collection during April-October of the current fiscal was up by 20.28 percent at Rs.284,081 crore as against Rs.236,176 crore in the same period last fiscal. While gross collection of corporate taxes was up 20.35 percent (Rs. 189,872 crore against Rs. 157,767 crore last year), gross collection of personal income tax was up by 20.17 percent (Rs.93,769 crore against Rs.78,029 crore last year). Net direct tax collections stood at Rs.2 18,850 crore, up from Rs.204,347 crore in the same period last fiscal, registering a growth of 7.10 percent.
The Government of India has reviewed the extant policy on FDI and decided as under: (i) FDI, up to 100%, under the automatic route, would continue to be permitted for greenfield investments in the pharmaceuticals sector. (ii) FDI, up to 100%, would be permitted for brownfield investments (i.e. investments in existing companies), in the pharmaceuticals sector, under the Government approval route.
In the context of formulating the proposals for the Union Budget of 2012-13, the Ministry of Finance would like to be benefited by the suggestions and views of your Association. You may like to send your suggestions for changes in the duty structure, rates and broadening of tax base on both direct and indirect taxes giving economic justification for the same.
Government has formulated a five pronged strategy to tackle the menace of black money which is as below: (i) Joining the global crusade against black money, (ii) Creating an appropriate legislative framework,(iii) Setting up institutions for dealing with Illicit Funds,(iv) Developing systems for implementation (new manpower policy); and (v) Imparting skills to the manpower for effective action (constant training for skill development).
Gross direct tax collections during the first five months of the current fiscal (April – August 2011) were up by 25.89 percent at Rs. 154,360 crore as against Rs. 122,618 crore in the same period last fiscal. While gross collection of corporate taxes was up 29.72 percent (Rs.96,597 crore against Rs. 74,463 crore last year), gross collection of personal income tax was up by 19.91 percent (Rs.57,582 crore against Rs. 48,023 crore last year).
The Government of the Republic of India signed a Double Taxation Avoidance Agreement (DTAA) with the Oriental Republic of Uruguay for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income and on capital on 8th September, 2011.
The Committee on Comprehensive Review of National Small Savings Fund (NSSF) headed by Deputy Governor, RBI has recommended revision of certain provisions of PPF Scheme, 1968 and benchmarking of interest rates on various small savings schemes with the secondary market yields on Central Government securities of comparable maturities with suitable spread.
LETTER [F.NO. 137/25/2011 – SERVICE TAX], Representations have been received seeking clarification regarding leviability of service tax on the additional amount that is collected towards the delay in making payment to the stock brokers by their customers (delayed payment charges) in respect of Stock Broker’s services.
Representations have been received seeking clarification regarding taxability of IPCL charges incurred in foreign currency by BPO/MNCs against receipt of services from the service provider situated outside India/group companies under reverse charge mechanism [Section 66A of the Finance Act, 1994 read with Rule 2 (1) (d) (iv) of the Service Tax Rules 1994].
Shri M. C. Joshi has taken over as the Chairman, Central Board of Direct Taxes (CBDT) with effect from 1st August 2011. Shri Joshi belongs to the 1974 batch of the Indian Revenue Service (IRS). Earlier, he was THE Chief Commissioner of Income Tax, Uttaranchal, after having served in the Income Tax department in various capacities. He also served in the Directorate of Enforcement as Special Director. Shri Joshi has a Masters degree in Economics.
