Direct tax collections in the country are likely to double after the proposed Direct Tax Code (DTC) and the Goods and Service Tax (GST) regime come into effect, a top government official has said.
"We are moving towards a scenario where I think there will be a substantial increase in collection of taxes when DTC and GST will be in place. GST will help us in direct tax collection," Central Board of Direct Taxes (CBDT) Chairman S S N Moorthy said.
Once GST was in place, all transactions would become transparent, he said, "I think the direct tax collections may also double," while addressing a seminar on Tax Deduction at Source (TDS) organised by the Indian Merchants' Chamber here today.
Referring to the Eurozone crisis, he observed that the debt crisis in the Eurozone was unlikely to have any effect on the domestic economy and would not impact tax collections.
"The symptoms are very good...As reported, the indirect tax collection has gone up by 40 per cent, which shows industry has picked up,” Moorthy said.
