IDBI Bank reaches about Rs.1.60 lakh crore mark in tax collections in FY 2012-13

IDBI Bank Ltd. with a strong focus on Government Business has been engaged in the collection of Direct and Indirect Taxes of the Central Government and various State Governments.  The Bank made an aggregate collection of Rs.1.59 lakh crore in Central and State Taxes during FY 2012 -13 registering an impressive growth of 28% over the previous year. Estimated tax collections of Central Government amount to Rs.10.35 lakh crore, of which Direct taxes are Rs.5.66 lakh crore and Indirect Rs.4.69 lakh crore. IDBI Bank’s share in Direct and Indirect Taxes has reached 16% and 11%, respectively.  In aggregate, the Bank has crossed Rs.1.42 lakh crore (13.7%) in Central Tax collection. While Direct tax collection has increased by 8%, Indirect tax collection has witnessed robust growth of 88% over last year’s collection.

During the year, the Bank had introduced multiple challan payment facility for customs duty through a single e-payment transaction which is a landmark achievement, providing tremendous ease in transactions for tax payers. Accordingly, customs duty mobilisation witnessed a quantum jump from Rs.6,956 crore in FY 2011-12 to Rs.22,092 crore in FY 2012-13, indicating robust growth of 217%.

As regards the State-level taxes, during the current financial year, the Bank has operationalised collection of commercial taxes in the states of Karnataka, Sikkim, Jharkhand and West Bengal. Thus the Bank is now authorised for collection of Commercial Tax in 14 States/UTs that include Assam, Andhra Pradesh, Bihar, Jharkhand, Karnataka, Gujarat, Maharashtra, Punjab, Rajasthan, Sikkim, Uttarakhand, West Bengal and UTs of Delhi and Puducherry.  The VAT/CST collection from above states/UTs was Rs.16,198 crore as against last year’s collection of Rs.12,125 crore, reflecting a growth of 34%. The Bank is in discussions with other states for their tax collections also.

The Bank has been leveraging its robust technology platform for tax collections through Straight Through Processes (STP). The Bank has thus been facilitating growing tax collections, in a hassle-free manner, and thus complementing the e-governance initiative of Government of India.