Page 12 - Banking Finance April 2022

ROUNDUP

Moody's raises growth person instruction across various Services exports may reach
states, the country is on its way to
forecast to 8.4% normalcy," it added. $325 billion in FY23, says
Moody's Investors Service upgraded its SEPC
financial year 2022-2023 (FY23) growth 45 mn IT returns pro- The country's services export is ex-
forecast for the Indian economy to 8.4
% from the earlier estimated 7.9 % as cessed pected to reach $325 billion in 2022-
the country moves to normalcy, post The income tax department said more 23 on account of increasing demand
the removal Covid-19 restrictions. than 4.50 crore tax returns have been for all kinds of services and gradual
However, it cautioned that high oil processed so far, of the total 6.26 crore resumption of regular international
prices and supply distortions could drag ITR filed for the financial year 2020-21. travels, according to the Service Export
the growth down. Promotion Council (SEPC) Chairman
Further, more than 5.41 crore income Sunil H Talati.
Fitch Ratings, on the other hand, main- tax returns (ITRs) filed have been veri-
tained its earlier projection of 10.3 % fied and 1.58 crore refunds amounting He said by the end of the ongoing fis-
growth in FY23 compared to 8.4 % to Rs 31,857 crore for AY 2021-22 cal year, services exports would reach
estimated for FY22. Moody's has esti- (2020-21 fiscal) have been issued. about $250 billion.
mated the Indian economy to grow at The estimated value of services export
9.3 % in FY22, official data for which In a tweet, the income tax department for April-January 2021-22 is $209.83
will be released. "Fiscal push for infra- also said refunds of over Rs 1.71 lakh billion, exhibiting a growth of 25.31 %
structure spending could help consoli- crore have been issued to over 1.97 as compared to the year-ago period's
date India's economic recovery. We crore taxpayers so far this fiscal. $167.45 billion.
have raised our 2022 calendar year This includes personal income tax re- "With the hope of COVID-19 waning
(CY22) growth forecasts for India to funds of Rs 63,234 crore and corporate away soon, demand for all kinds of ser-
9.5% from 7%, and maintained our tax refunds of Rs 1.08 lakh crore. vices is increasing in the global mar-
forecast for 5.5% growth in 2023 In a statement, the Central Board of kets, so we are setting an ambitious
(CY23). This translates into 8.4% and Direct Taxes (CBDT) said over 29.8 lakh target of USD 325 billion in 2022-23,"
6.5% in fiscal years 2022-23 and 2023- major tax audit reports (TARs) have Talati, Chairman of Services Export
24, respectively," Moody's said in its been filed on the e-filing portal of the Promotion Council (SEPC) said.
latest Global Macro Outlook. income tax department as on February He said support measures for the sec-
Moody's said the speed of the recov- 15, 2022. Over 4.14 lakh major TARs/
tor in the new foreign trade policy
ery from the first lockdown-led con- forms have been filed itself. would help further boost the outbound
traction in Q2 2020, and subsequently
On the last date i.e. the extended due shipments. It had earlier proposed an
in Q2 2021 during the Delta wave, was date of February 15, 2022, 14 % of alternative scheme to SEIS (Services
stronger than expected, and the these statutory forms and in the last Export from India Scheme) - DRESS
economy is estimated to have sur- five days from February 11 to 15, 30 % (Duty Remission on Export of Services
passed the pre-Covid-19 level of gross of these statutory forms were filed. Scheme) to boost exports.
domestic product (GDP) by more than
5 % in the last quarter of 2021. The I-T department also asked taxpay- "Despite the pandemic, the services
ers who are yet to accept the tax au- sector has managed to retain 90-91 %
"Sales tax collection, retail activity and dit report submitted by their CA to of its last year's performance in terms
PMIs suggest solid momentum. As is complete the process of submission. of overall exports," he said adding ser-
the case in many other countries, the vices exports have been growing at a
recovery is lagging in contact-intensive "More than 5.41 crore income tax re- compound annual growth rate (CAGR)
services sectors, but it should pick up turns (ITRs) filed have been verified out
as the Omicron wave subsides. With of 6.26 crore ITRs filed for AY 2021-22. of 8-9 % for the last 20 years and the
most remaining restrictions now being Of the verified ITRs, more than 4.50 sector is eighth largest in the world
lifted with the improvement in the crore ITRs have been processed and and second in Asia Pacific region.
Covid-19 situation, including the re- 1.58 crore refunds for AY 2021-22 have "We need to have a system of incen-
opening of schools and colleges for in- been issued," the statement added. tive for services exports," Talati said.

12 | 2022 | APRIL | BANKING FINANCE