This fiscal, the finance ministry is expecting an excess of Rs 5,000 crore in service tax collections, above the target of Rs 15,200 crore.
Service tax collections grew by almost 36% during April to September this fiscal (the ministry expected a growth of 34.5%).
GV Naik, director general of service tax, said: “If collections grow in the same pattern, we will be able to collect 8 lakh crore by 2020.”
He was present at a conference organised by the Bengal National Chamber of Commerce and Industry. Service tax contributes over 55% to the GDP. “Service tax collections increased from Rs 400 crore in 1994-95 to Rs 37,481 crore in 2006-07. Services covered under the tax net have increased from 3 to 100, and the number of the registered assessed crossed 9 lakh last fiscal, from around 4,000 in 1994-95,” Naik said.
Maharashtra tops the list of service tax collections. West Bengal is not following the all-India pattern. The growth of service tax in the state has been almost 31% till October this year as against the national average of 34.5%. “Collections have not been sufficient in West Bengal, even though there is an exclusive service tax commissionerate in Kolkata,” he said.
Collections in the state during April-October 2007 were Rs 1,102 crore, as against Rs 843 crore during the period last year. According to an official in the department, the growth of newly introduced services like rental service is quite low.
?The collection has not been in the line it was expected. More survey and audit teams are being deputed and the coming months will see better results,? he said.