MUMBAI: Most of the 3,000 plus MNCs operating in India appear to be benefiting from a buoyant economy, going by the higher tax paid by them for the April-December 2007 period. The outgo has grown between 50 and 100% over the year-ago period.
According to figures compiled by the international taxation division of the Income Tax department, foreign banks have emerged as the biggest tax payers in the MNC club.
Due to improved margins, the collection by the international taxation division may cross the projected Rs 12,000 crore this fiscal ; expectations are it could be way above Rs 15,000 crore.
The banks that top the list are Citi, HSBC, Stanchart, Deusche Bank, Bank of America, Barclays Bank, J P Morgan and Chase Bank, Calyon bank, Antwerp Diamond Bank NY, State Bank of Mauritius among others.
Besides a good loan growth and the ability to pass on a higher rate to borrowers, income has increased due to fee-based and advisory services and an active derivatives book. Several banks have gained from trade related finances and sale of structured products based on currency and interest rate benchmarks.
Around Rs 904 crore paid by Citibank for the April-December 2007 period is the highest tax paid by an MNC in India this year. This is almost 100% up, over the tax paid by the bank during the same period last fiscal. Citi Bank had paid Rs 697 crore for the whole last fiscal ending March 2007.