Indirect tax collections up 4.6% in Apr-Aug

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Indirect tax mop up inched up by 4.6% in the April-August period of this fiscal, while customs duty and excise duty collections rose marginally.

Indirect tax collections comprising excise, customs and service tax stood at Rs 1,94,492 crore in the first five months of 2014-15 fiscal as against Rs 1,85,881 crore in the corresponding period a year ago, the finance ministry said in a statement.

The growth at 4.6% is far less than 25% annual increase envisaged in the Budget for the full 2014-15 fiscal.

Excise collection rose marginally 0.5% during the quarter to over Rs 61,415 crore.

Customs mop up also rose marginally by 0.3% to over Rs 71,207 crore during April-August period against Rs 70,999 crore in the same period a year ago.

Service tax collection, which has become a new focus area for revenue officials, grew by 15.1% to Rs 61,870 crore during the period, the statement said.

With an aim to widen the service tax net, the government had introduced the concept of negative list of taxation. As per it, all services except those in the negative list are taxable.

The indirect tax collection target for 2014-15 fiscal stands at Rs 6.24 lakh crore.

Indirect tax collection in the month of August grew by 9% to Rs 40,644 crore.

Excise duty mop up in month of August grew by 8% to Rs 13,782 crore, whereas custom duty collection grew by 9.9% to Rs 15,902 crore.

Service tax mop up in August grew by 9% to Rs 10,960 crore against Rs 10,059 crore in the same month last fiscal.