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Abstract

We invite unpublished novel, original, empirical and high quality research work pertaining to recent developments & practices in the areas of Computer Science & Applications; Commerce; Business; Finance; Marketing; Human Resource Management; General Management; Banking; Economics; Tourism Administration & Management; Education; Law; Library & Information Science; Defence & Strategic Studies; Electronic Science; Corporate Governance; Industrial Relations; and emerging paradigms in allied subjects like Accounting; Accounting Information Systems; Accounting Theory & Practice; Auditing; Behavioral Accounting; Behavioral Economics; Corporate Finance; Cost Accounting; Econometrics; Economic Development; Economic History; Financial Institutions & Markets; Financial Services; Fiscal Policy; Government & Non Profit Accounting; Industrial Organization; International Economics & Trade; International Finance; Macro Economics; Micro Economics; Rural Economics; Co-operation; Demography: Development Planning; Development Studies; Applied Economics; Development Economics; Business Economics; Monetary Policy; Public Policy Economics; Real Estate; Regional Economics; Political Science; Continuing Education; Labour Welfare; Philosophy; Psychology; Sociology; Tax Accounting; Advertising & Promotion Management; Management Information Systems (MIS); Business Law; Public Responsibility & Ethics; Communication; Direct Marketing; E-Commerce; Global Business; Health Care Administration; Labour Relations & Human Resource Management; Marketing Research; Marketing Theory & Applications; Non-Profit Organizations; Office Administration/Management; Operations Research/Statistics; Organizational Behavior & Theory; Organizational Development; Production/Operations; International Relations; Human Rights & Duties; Public Administration; Population Studies; Purchasing/Materials Management; Retailing; Sales/Selling; Services; Small Business Entrepreneurship; Strategic Management Policy; Technology/Innovation; Tourism & Hospitality; Transportation Distribution; Algorithms; Artificial Intelligence; Compilers & Translation; Computer Aided Design (CAD); Computer Aided Manufacturing; Computer Graphics; Computer Organization & Architecture; Database Structures & Systems; Discrete Structures; Internet; Management Information Systems; Modeling & Simulation; Neural Systems/Neural Networks; Numerical Analysis/Scientific Computing; Object Oriented Programming; Operating Systems; Programming Languages; institutions, etc., if any. 5. ABSTRACT: Abstract should be in fully italicized text , ranging between 150 to 300 words . The abstract must be informative and explain the background, aims, methods, results & conclusion in a SINGLE PARA . Abbreviations must be mentioned in full . 6. KEYWORDS: Abstract must be followed by a list of keywords, subject to the maximum of five . These should be arranged in alphabetic order separated by commas and full stop at the end. All words of the keywords, including the first one should be in small letters, except special words e.g. name of the Countries, abbreviations. www.aeaweb.org/econlit/jelCodes.php, ABSTRACT Tax has always been the driving fuel of the economy ever since the history of mankind. The same holds true yet for all the developed and developing economies including India. India has got some major taxes in the form of Corporation tax, Customs Duty, Excise Duty, Income and Services tax which form the major source of its revenue. This study was conducted to find the relationship between different kinds of taxes and GDP of India for years 1994-2014 using time series data. Statistical techniques used in analysis include Regression analysis, Unit root test, co-integration test, Breusch-Pagan-Godfrey, and so other tests for reliability of the study. The study shows that there is significant positive impact of taxation on economic growth of India with Income tax being least effective. Services tax apart from other taxes was found to be one of most productive in such a shorter span of time since its imposition (in 1994). the with the (TTR) a and tax (GST) or sales tax that reduces taxes on international trade (ITT) has impact to ITT the of and expensive than domestic encourage consumption and the relationship of economic growth and taxation This study included the annual data from to of used the as measure of economic All the were converted in constant price using 2000 as base year. ADF and PP test used by researchers as Unit Root test for stationary in time series data. For co-integrated time series they used Vector Error Correction Model (VECM). They concluded that changes in taxes have no effect on economic growth. This will decrease burden on both the consumers and producers. Empirically there is lot of the controversies about the impact of taxes on economic growth among authors, that their empirical study shows some differences about the impact. Many of the authors concluded that there is positive relationship overall between taxes and economic growth, and some concluded this relationship as negative. Few study results state that there is no relationship between taxes and economic growth. The motive of this present empirical study is to seek the answer for the same question of relationship between tax and economic growth. This way the relation between the GDP growth rate and the major taxes of India is studied from the period 1994-95 to 2013-14. The study would have been extended much below to 1994 but since one of the major important taxes i.e. Service tax was imposed for the first time in 1994. So, there was no option other than to start the analysis from 1994 and further revised estimates of various taxes were taken into consideration for the period of 2014. This study focuses on the relationship and significance of different taxes with GDP of India. The study concluded that there is overall positive impact of taxes on GDP with high regression coefficients. However, the most minimum of these coefficients is of the income tax, which states that taxes on income is adversely affecting the productivity of the people and so to GDP. The coefficient of Corporation Tax (CT), Custom Duty (CD) and Excise Duty (ED) is very high and significant, which shows that these taxes play a dominant role in improvement of GDP growth, as they can generate greater revenues with a unit rise because of highly consumption society and lack of tax evasion which is evident from the higher coefficients of ST, CD and ED. The Services Tax imposed in 1994 has shown much progress so far and is the one of the emerging taxes in India. The low beta coefficient of Income tax is however on the basis of excessive income tax evasion. Income tax rates in India are one of the highest which is also responsible for massive tax evasion. Further higher income tax rates decreases the incentive to work more and hence cause a deteriorating effect on GDP growth rate. Percentage of people paying income tax is also too low mainly the people working in the government sector or the organized sector and the corporates having no scope for evasion for one reason or the other, pay income tax. Apart from excessive evasion and inefficient collection it still ranks second after the Corporation Tax in terms of amount of collection. Overall citizens of the society are subject to indirect taxation with its burden being most imposed on the poor and middle class by way of its regressive character. The effect of lowering of the Corporation tax rate from 30% to 25% during the present (2015-16) budget is yet to be seen by way of its impact on the tax collection. It is to be seen whether India will lose some of its revenue with time or ‘laffer’ curve approach will follow, ‘which states increase in tax revenue with a decrease in its rate at certain point of time’.