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Firms enjoying tax exemption as infra sector performed better
September, 07th 2009

Companies are enjoying tax exemptions as infrastructure sector entities like in power and healthcare have performed better in the first quarter of this fiscal, industry body Assocham said.

Improved realisations by companies in these sectors have contributed to better margins and improved bottom lines, it said in a study.

The study said the improved profitability has also raised the tax outgo. The tax expenses of companies in the power sector has gone up by 31 per cent, healthcare firms recorded a 21.1 per cent increase.

It further said tax expenses of entities operating in general infrastructure sector recorded an increase on 90.3 per cent during the first quarter of the current financial year.

Sector which do not enjoy infrastructure status have recorded decline in tax outgo, it added.

The tax outgo of hospitality sector registered a negative growth of 131.2 per cent in the first quarter of 2009-10 against the same period last year. Tax outgo in real state contracted by 82.1 per cent, it added.

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