Provisional advance tax collections for the second quarter (Q2) of the current fiscal stood at around Rs 40,000 crore, nearly 11 per cent lower than in the same period last year.
The Q2 advance tax payments were made by September 15 this year. Based on their profitability projections, companies pay 45 per cent and non-corporates pay 30 per cent of their tax liability in the period. Advance tax payments are, therefore, a leading indicator of the profitability of companies. Oil and financial sectors saw a moderation in the payments.
Indias largest oil exploration firm, ONGC, retained its position as the top payer of advance tax. However, at Rs 2,412 crore, its tax payout is almost the same as in the corresponding quarter last year, when it had grown 17 per cent.
Indian Oil Corporation did not pay any advance tax in the second quarter, compared with Rs 447 crore it paid in the corresponding quarter in the last fiscal.
Mumbai, which contributes over 40 per cent of the total advance taxes, has seen a mere 8 per cent growth in the second quarter.
Indias top private lender, ICICI Bank, and diversified conglomerate Reliance Industries saw a 22 per cent and 5 per cent decline in the payments, respectively.
However, the countrys largest lender, State Bank of India, posted a robust 48 per cent increase in advance tax payment to Rs 1,560 crore, as compared with Rs 1,054 crore in the same period last fiscal. Tata Steel saw a massive 125 per cent increase in the payment.