Concerned over low service tax realisation, Revenue Secretary Shaktikanta Das today asked the CBEC (Customs, Central Excise and Service Tax) to analyse revenue mop-up sectorally and ensure that it grows by 20-22 per cent in the fiscal.
"We need to analyse why service tax growth hovers around 16 per cent. I feel the potential in the growth of service tax is higher, so we need to analyse this sectorally, we need to analyse this in terms of various zones and find out why service taxes are not showing a slightly higher growth," he said, while addressing a conference of Chief Commissioners and Director Generals of CBEC.
"I would expect service tax growth at least 20-22 per cent if not more. So there is a lot of potential for showing better result in our service taxes. This is one area where I would like to impress upon all of you (CBEC) to give special attention," he said.
On indirect tax collection target for the current fiscal, Das said the Budget estimate targets are very realistic.
The indirect tax collection for 2015-16 has been pegged at Rs 6.48 lakh crore, an increase of about 19 per cent over the last fiscal.
Indirect tax revenue jumped over 37 per cent to over Rs 2.1 lakh crore during April-July period of current fiscal, on the back of higher excise collections.
He further said that the department was able to achieve the revised estimate targets for the last fiscal.
On Goods and Services Tax (GST) roll out preparedness, Das said the exact structure and rate would be finalised by the GST council.
"Officer of CBEC are very actively involved in various committee and sub-committee which are drafting the legislation. The three draft legislation which are being prepared by the three different committees that include senior officers of CBEC, officers of department of revenue and officers of finance and taxation department of state-government."
One of the panels has already finalised the draft legislation, he said, the other two committees are expected to finish this job by September 15.
He however, did not disclose which of the draft bill has been prepared.
The three legislations -- Central GST (CGST), State GST (SGST) and integrated GST (iGST) -- will be moved for passage in Parliament after constitutional amendment Bill on GST becomes an Act.
For improving tax payer service, he said, the senior official at the field level should be meeting tax payers once a week to resolve their difficulties.
On every Wednesday this practice has to be followed without fail for improving tax payer interface.
