Publication date

जन, 2004

Details

Report submitted to the Ministry of Finance

Authors

A. L. Nagar, Sanjay Kumar, Rajorshi Sen Gupta

Abstract

The CMIE data has been used to analyse CT accruing from a panel of four sectors (manufacturing, mining, electricity, and services) for 14 years 1989-90 to 2002-03. Since the four sectors are simultaneously affected by the general economic conditions prevailing in the country and by changes in government policies, it is assured that individual sectors do not operate in isolation and independently of each other. Accordingly Seemingly Unrelated Regressions (SUR) method for estimating the system of regressions has been used. CT has been estimated from individual sectors in terms of (i) PBT (profit before tax) both actual and estimated; and (ii) the upper bracket statutory tax rate. For manufacturing sector PBT has been estimated in terms of - infrastructure, sales, Interest payments, debt equity ratio and depreciation. For other sectors in terms of – infrastructure, -sales and bank rate of interest.