 "Flat advance tax not to upset govt fiscal deficit target")
Even as the cash crunch following demonetisation hit advance tax collections for the quarter ending December, economists say the fiscal deficit target of 3.5 per cent of gross domestic product for this financial year (FY17) is not a difficult one to achieve.
The cash crunch caused by demonetisation dented advance tax numbers, with some fast-moving consumer goods companies and banks reporting a year-on-year decline.
Indirect taxes have also been hit by demonetisation, but these were camouflaged by higher numbers in the months prior to November, additional revenue measures of the government which included an increase in service tax rate from
