Sunday, December 4 2005 10:03 Hrs (IST) - World Time -

New Delhi: The Center's gross tax collection was up by 21 per cent at Rs 1,64,567 crore till October, as India Inc. stepped up production to match the demand of Asia's third largest economy that grew by eight per cent in first half of 2005-06.

After providing a higher Rs 47,645 crore to states, the Center's net collection were still higher by 24 per cent at Rs 1,16,297 crore in the first seven months and accounted for 42.5 per cent of the budget target of Rs 2,73,466 crore for 2005-06, as per the figures collated by Controller General of Accounts.

Corporate Tax, Customs and Service Tax drove up the overall tax collection although the government mopped up less in Income Tax after the rationalization of tax slabs and rates in this year's Budget.

In terms of direct taxes, the government mopped up Rs 25,658 crore in Income Tax till October this fiscal compared to Rs 26,874 crore in the year ago period.

However, the only silver-lining for the government was that I-T collection in October more than doubled to Rs 4,575 crore this year from Rs 1,699 crore a year ago.

Corporate tax collection galloped up by almost 50 per cent to Rs 38,071 crore as India Inc improved profits in first and second quarters. The October collection was, however, lower at Rs 4,145 crore this year compared to Rs 5,072 crore last year.

On the indirect tax front, Custom collection was up by over 23 per cent at Rs 37,204 crore till October as imports continued to surge.

Excise duty mop up was higher by only 6 per cent at Rs 49,166 crore as there was decline in collection in October.

Service Tax was growing by over 60 per cent and was close to Rs 14,000 crore till October.