Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
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: TDS :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: cpt :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: due date for vat payment :: form 3cd :: empanelment :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India
« General »
 India’s GST among most complex in world, and it is 0% tax rate that is hurting the idea
 Can’t overrule courts with retrospective amendments, says Supreme Court
 Why tax planning should be an all-year round activity
 8 financial tasks you should do in the next 30 days
 Income Tax department may defend CPC in returns fraud case
  Income tax department sends notices to investors over tax treaty gains
 Seven months after GST rollout: Time for handholding over, Centre to intensify efforts to curb tax evasion
 Individual angels may get tax relief too
 The differences between tax and cess
 Startups that raised funds from angel investors face tax scrutiny
 Tax collection assumptions in India's budget ambitious

Initial advance tax numbers show lower profit growth?for companies
September, 14th 2013

Companies may pay lower advance tax in the September quarter compared with the year-ago period, according to initial projections by the income-tax department. The numbers suggest that sluggish economic growth has taken its toll on corporate profitability and government revenue.

According to the income-tax department’s projections, 13 firms have indicated they will pay Rs.4,536 crore advance tax in the September quarter, 12% lower than a year ago.

A clearer picture, however, will emerge by 16 September when the top 100 companies pay their second quarter advance taxes.

Indian companies pay advance tax a fortnight before the end of every quarter on their projected earnings. These numbers are seen by some analysts as a reflection of their financial performance. In line with the Income-Tax Act, companies are required to pay 15% of their total advance tax in the first quarter, followed by 30%, 30% and 25% in the next three quarters, respectively.

India’s economic growth slowed to 5% in the year ended 31 March—the slowest pace in a decade. Growth was 4.4% in the first quarter of the current fiscal year, the slowest in four years. High borrowing costs and high inflation have caused companies to delay their investment plans as consumer spending remains tepid.

As the economy struggles for recovery, the banking sector is staring at a potential bad loan crisis as non-performing assets rise.

State Bank of India, the largest bank by assets, is expected to pay 39% lower advance tax in the September quarter—Rs.1,100 crore from Rs.1,800 crore during the same period last year. Dena Bank is likely to pay 73% lower advance tax at Rs.50 crore, while IDBI Bank Ltd may pay Rs.400 crore, down 15%.
IndusInd Bank Ltd is likely to pay advance tax of Rs.210 crore, up 31% from Rs.160 crore in the yea-ago period. Bank of Baroda’s initial advance tax numbers remained unchanged at Rs.620 crore.

The trend is mixed for companies from other sectors.

Drug maker Lupin Ltd is likely to pay Rs.165 crore as advance tax for the September quarter, up 68% from the same quarter last year, and Johnson and Johnson Ltd may pay Rs.53 crore, up 33%. In the cement sector, Ambuja Cements Ltd may pay 27% lower advance tax at Rs.110 crore and Lafarge India Pvt. Ltd around Rs.58 crore, down 11%.

A senior I-T official (in Mumbai) said, “The growth in tax collection is (likely to be) muted.”

The tax division in Mumbai, which serves as the headquarters for most of India’s top companies, contributes the biggest share of taxes in India.

To be sure, India’s factory output as measured by the Index of Industrial Production rose 2.6% in July and retail inflation decelerated in August for the second consecutive month to 9.52%, adding to the recent string of positive tidings for an economy that has been in the doldrums for the past year.
However, analysts are maintaining caution.

“We cannot call the rebound in industrial output and slight deceleration in consumer price inflation as greenshoots,” said Gautum Trivedi, managing director and head of equities (India) at Religare Capital Markets Ltd. “We need to wait for the actual advance tax numbers but initial data shows that economy continues to remain in a precarious situation. Underlying weakness in the economy may remain until the end of current fiscal year.”

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multimedia Presentations Multimedia Solutions 3D Solutions Corporate Presentations Business Presentations Multimedia Presentation India M

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