Service Tax collection in the Kolkata circle for the fiscal year 2008-09 has seen an increase of 20.8 per cent with the total collection standing at Rs 2445 crore as against Rs 2023 crore collected in the last fiscal.
Despite the increase, the collection for FY 2008-09 has fallen short of its target of Rs 2549 crore by Rs 104 crore because of the the economic downturn and reduction in service tax rate from 12.2 to 10.3 per cent. “We have fallen below the target but overall service tax collection has seen an increase of 20.8 per cent compared to last year,” said V K Goel, commisioner of Service Tax, Kolkata on the sidelines of an interactive seminar organised by Merchant Chamber of Commerce. Last year total service tax collection was Rs 2023 crore.
The increase in service tax collection has also been due to the increase in the number of assessees which has gone up from 42,000 to 48,000 during the fiscal year 2008-09.
Some of the sectors which contributed heavily were insurance, telecom, banking and real estate. Kolkata-based National Insurance Company Limited, BSNL, were some of the highest contributors, pointed out Goel.
“We are looking at a number of measures to facilitate payment and filing of return processes. The department has made it mandatory for all assessees whose total service tax payable is beyond Rs 50 lakh to pay online. We are trying to get the online facility for filing of returns as well. The department is working on it, it will take a year or two,” said Goel. All India Service Tax collection for fiscal year 2008-09 was close to Rs 60,000 crore with the total number of assessees over 5.5 lakh.m For 2009-10, the national target for Service Tax collection has been fixed at Rs 68,900 crore.