Taxmen fear muted show by corporates in Q2 advance tax payout
September, 14th 2013
There are indications that the advance tax collection in for July-September quarter may see a "muted growth" in the Mumbai circle, according to a senior Income Tax official here.
"Looks like there will be a muted growth... We are targeting a growth of 18.5 per cent in collections from Mumbai this fiscal," said the official in Mumbai, which contributes a third of the direct tax mop-up.
The official, however, noted that nothing is final yet as Sunday is the last day for making the payment, and he expects quite a lot of companies to pay up tomorrow.
The picture will be clear only on Sunday or by Monday, the official added.
The advance payouts, a staggered way of meeting tax requirements by taxpayers paying large amounts, are generally considered as a barometer of corporate performance, and the pulse of the economy in general.
The concern over Q2 payouts comes at a time of economic downturn, wherein quarterly growth has slipped to a four-year low of 4.4 per cent for the April-June quarter.
Meanwhile, it is understood that the country's largest lender State Bank of India is likely to have paid much less amount than in the year-ago period for the second quarter, with its outgo dropping to Rs 1,100 crore from Rs 1,820 crore.
Without giving out the numbers, the I-T official said the bank is indicating a drop.
Besides, other state-owned lenders have also shown a drop or flat outgo for the quarter, while some private sector companies have shown increase.
The numbers could not be independently verified from the I-T department officials.