Tata slump hits sales tax target
Jamshedpur, Feb. 3: The recent slump at Tata Motors has affected revenue collection of the sales tax department’s Jamshedpur division.
With only a couple of months to end this fiscal, the division has managed to meet only 65 per cent of its annual target. This division provides 30 per cent of the state’s sales tax collection each year.
Though the recession has hit every sector, senior officials of the department claimed that the downturn in production target of Tata Motors plant is the main reason behind the low collection.
In fact, the division is unlikely to meet its annual collection target of Rs 1,003 crore. Till January, the Jamshedpur division of the sales tax department has collected revenues of Rs 670 crore only.
Sales tax department joint commissioner K.C. Jha maintained that the downturn in the production target at Tata Motors has had a rippling effect in most revenue collection centres of the Jamshedpur circle and the neighbouring Adityapur circle.
Since September last year, the Adityapur circle of the division failed to meet its target.
Officials pointed out that 70 per cent of the industrial unit based in the Adityapur industrial area are ancillaries of Tata Motors.
Since the fall in production at the Tata plant, they have received few orders. “In January, the Adityapur circle managed to collect a revenue of just Rs 12 crore. It has been falling short of its monthly target by around 20-22 per cent,” said an official.
According to him, this circle is not expected to reach anywhere close to its target, as there are few chances of a sudden production hike.
In January, the Jamshedpur division managed to collect a revenue of Rs 30.16 crore, against the target of Rs 41 crore.
However, even during the recession, the Jamshedpur urban and Singhbhum circles of the department managed to put up a good show last month.
The Singhbhum circle also collected revenues of Rs 9.1 crore against its target of Rs 8.88 crore.
The Jamshedpur urban circle exceeded its target by almost Rs 50 lakh.
Against a target of Rs 13.83 crore for January, it collected Rs 14.33 crore.
The officials also claimed that their hands are tied and they cannot do much to ensure that the Jamshedpur division meets its annual target.
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