Advance tax collection surge points to sharp recovery
June, 16th 2010
The quantum jump in advance tax payment made by companies based in Maharashtra for the first quarter of this fiscal shows that the economy is clearly on the high growth path.
Details from the Income-Tax Department on Tuesday (the last day for advance tax payments) show that 1,720 corporate houses paid higher tax compared with last year while 475 paid less.
An analysis of the tax payment by top 77 companies shows 58 companies that paid more than what they did last year while 19 paid less. The net gain in tax collection was Rs 1,251 crore.
Maharashtra accounts for nearly 45 per cent of the country's tax revenue. The Centre plans to mop up Rs 3.01 lakh crore as corporate tax this fiscal, 20 per cent more than last year's collection of Rs 2.5 lakh crore.
The banking sector showed a mixed trend in advance tax payment. While State Bank of India and Bank of India paid lower tax of Rs 869 crore (Rs 1,068 crore) and Rs 158 (Rs 231 crore) respectively, ICICI maintained last year's level of Rs 350 crore.
Union Bank increased its outgo by 62 per cent to Rs 168 crore (Rs 104 crore) and Bank of Baroda to Rs 225 crore (Rs 210 crore), while Oriental Bank and YES Bank doubled their payments to Rs 140 crore (Rs 70 crore) and Rs 50 crore (Rs 27 crore).
In the insurance space, Life Insurance Corporation paid 14 per cent more at Rs 534 crore (Rs 469 crore) and GIC nearly thrice as much at Rs 46 crore (Rs 17 crore).
Reflecting the robust demand for housing loans, HDFC's advance tax payment was up 20 per cent to Rs 215 crore (Rs 175 crore). The asset management arm increased its payment five-fold to Rs 60 crore (Rs 10 crore), while M&M Finance's outgo was up marginally at Rs 26 crore (Rs 22 crore).
In the manufacturing sector, Reliance Industries doubled its tax payment to Rs 653 crore (Rs 314 crore). Larsen & Toubro paid more at Rs 130 crore (Rs 110 crore).
Aditya Birla Group flagship Hindalco Industries' outgo was up 22 per cent to Rs 55 crore (Rs 45 crore) while Grasim Industries' was down 37 per cent to Rs 40 crore (Rs 64 crore).
As for the oil majors, IndianOil paid Rs 225 crore (Rs 130 crore), Bharat Petroleum Corporation Rs 126 crore (Rs 40 crore) while Hindustan Petroleum Corporation forked out four times more at Rs 61 crore (Rs 15 crore).
Holcim group companies ACC and Ambuja Cement had a lower outgo at Rs 50 crore (Rs 60 crore) and Rs 65 crore (Rs 70 crore) respectively.
In the Tata group, Tata Motors paid Rs 65 crore (Rs 30 crore), Tata Consultancy Services Rs 128 crore (Rs 53 crore) while Tata Chemicals' payment was lower at Rs 29 crore (Rs 26 crore).
Mahindra & Mahindra's payout was nearly four times more at Rs 63 crore (Rs 17 crore) while Bajaj Auto paid twice as much at Rs 110 crore (Rs 50 crore).
Fast moving consumer goods company Hindustan Unilever maintained its tax payment at the last year's level of Rs 75 crore while GlaxoSmithKline Pharmaceuticals paid a tad more at Rs 42 crore (Rs 39 crore).