Indicating a continuing buoyancy in the Indian economy, corporate tax collections have seen a significant growth for the three months ended June 15. State Bank of India (SBI), among the top 10 advance tax payers for over a decade, paid Rs 503 crore for three months ended June 15.
This was 40% higher than Rs 356 crore it paid during the corresponding period last year. The rise in revenue is attributed to the banks ability to transfer the high interest cost to its borrowers.
Advance taxes are paid in four instalments in a year. They are paid in June, September, December and March. Though not a precise, the first instalment is considered 15% of the total advance tax to be paid in a year. Reliance Industries (RIL) paid Rs 290 crore, registering a 38% increase.
Last year, the company had paid Rs 210 crore. RIL, which was a zero-tax company for a long time thanks to its diligent tax planning methods that included investing in infrastructure projects, started figuring in the list of 10 top tax payers from last year.
Since all its infrastructure projects have been completed, the tax outgo too has jumped. Bajaj Auto has registered a decline in payment. The tax outgo stood at Rs 60 crore, compared to Rs 72 crore it paid a year ago, recording a 16% decline. Analysts say that the auto sector is under pressure from rising interest costs and that have affected the sales.
ICICI has paid advance tax of Rs 250 crore, marking a 25 % increase over the corresponding period last year when it paid Rs 200 crore. Hindustan Levers tax outgo registered an increase of 19%, from Rs 42 crore last year to Rs 50 crore. HLL, which used to be on top of the charts earlier, has been lagging for the last three years. While Videocon paid Rs 5 crore same as last year, Century Textiles paid Rs 23 crore against Rs 24 crore last year.