Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: ACCOUNTING STANDARDS :: cpt :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: articles on VAT and GST in India :: VAT Audit :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: VAT RATES :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment
 
 
« General »
 Tax queries: Contact employer to get Form 16 error rectified
 Finance Ministry may hike monetary limit for filing tax appeals
 Compilation of all notifications issued ON
 Banking transaction tax to have cascading effect: NIPFP
 While filing tax in India, NRIs do not have to state overseas income
 Tax ease on cards, some daily use items may become cheaper
 It’s one year of GSTN, too
 SBI home, auto loan interest rates cut, set to be effective from Nov 1
 MNCs will have to furnish extra disclosures from March 2018
 High Court Allows Woman To File Income Tax Returns Without Quoting Aadhaar
 If tax status is no longer NRI, all your income is taxable in India

Cement companies pay lower advance tax
July, 04th 2008

Advance tax paid by top cement firms has declined significantly for the June quarter, indicating the first signs of a possible slowdown in construction activity.

Taxes paid by ACC and Ambuja Cement have declined by 30% and 17%, respectively, while those by Grasim and Ultratech have slid by 25% each, with respect to the year-ago quarter.

Lower tax outgo means lower profit expectations for cement companies arising from shrinking margins and revenue. The April-June quarter is considered the strongest for cement makers, as construction activity peaks during the period. But a 16% decline in the tax outgo for top 10 cement makers seems to indicate a different story.

Indias largest cement maker ACC has paid an advance tax of Rs 45 crore (30% down), Grasim Rs 70 crore (25% down), Ultratech Rs 37 crore (25% down), Ambuja Cement Rs 100 crore (about 17% down), Dalmia Cement Rs 7.50 crore (30% down), and OCL Rs 2.9 crore (67% down).

Several companies having predominant market share in south India have, however, witnessed a significant rise in their tax outgo. India Cements paid Rs 20 crore (54% up), while Madras Cement paid Rs 15 crore (67% up) and Prism Cement paid Rs 19 crore (58% up). This is primarily because the southern market has remained firm through the past year and companies in the region still hold some pricing power due to supply-demand gap.

Companies based in north, east or western markets have seen a decline in their tax outgo, reflecting the market conditions there. ACC, which has a presence in most markets, has fared poorly. It reported a decline in despatches in both April and May. According to Cement Manufacturers Associations figures, production for the industry rose 5.5% and despatches rose 5% in April-May 2008, as against the year-ago period, while installed capacity increased almost 20% in the same period.

The industrys capacity has increased to 200 million tonnes, which according to experts is more than the current need and its impact would be soon visible on prices. Prices will start correcting in the next six months, beginning with northern market, where capacity build-up is maximum, Karvy Stock Broking cement analyst Amit Srivastava said.

But India is not a uniform market and despite excess supply, cement makers could exploit demand-supply gap in micro markets to hike prices. Fuel price hike has raised transportation cost, which will dissuade cement makers to explore markets away from their manufacturing base, Mr Srivastava said, adding firms may cut capacity utilisation to get better prices.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions