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In a sign of marked improvement, the advance tax paid by 100 top corporate houses based in Mumbai was up 17 per cent in the December quarter at Rs 20,047 crore (Rs 17,149 crore).
Despite high interest rates and a slowing economy, the top companies’ payment in the first three quarters this fiscal was up 13 per cent at Rs 49,342 crore (Rs 43,586 crore). These companies, which account for 30 per cent of the annual corporate tax collection, had paid Rs 58,954 crore as advance tax last fiscal.
The government has set a direct tax collection target of Rs 5.70 lakh crore for this fiscal. Direct taxes include income-tax, corporate tax and wealth tax.
In the first eight months of this fiscal, the net corporate tax collection was at Rs 162,897 crore. The tax payout is the barometer of corporate confidence in business prospects.
MANUFACTURers HIT
The difficulty faced by the manufacturing sector was quite evident from the lower tax paid by top companies in this sector. The high cost of funds, rising operational expenses and slowing demand has hit most automobile, metal and infrastructure companies.
Tata Motors, which shut its plant for a short period earlier this month to avoid piling up of inventory, has skipped paying advance tax in the December quarter.
The company had paid Rs 100 crore last year.
However, Bajaj Auto and M&M paid higher taxes of Rs 470 crore (Rs 450 crore) and Rs 295 crore (Rs 207 crore) respectively. Tata Steel halved its tax payment to Rs 599 crore (Rs 1,090 crore), while Tata Power cut its payout by 12 per cent to Rs 78 crore. Sajjan Jindal-owned JSW Steel, hit by iron ore shortage in Karnataka, marked up its payout to Rs 130 crore (Rs 50 crore).
Just like last year, oil marketing and refining companies HPCL, IOC and MRPL did not pay tax this quarter. Having skipped payment last year, BPCL shelled out Rs 201 crore this year
Trimmed payouts
Aditya Birla Group companies Hindalco, Grasim Industries and Aditya Birla Nuvo paid lower taxes of Rs 115 crore (Rs 180 crore), Rs 62 crore (Rs 120 crore) and Rs 29 crore (Rs 45 crore) respectively.
L&T trimmed its payout by six per cent to Rs 330 crore (Rs 350 crore).
Siemens’ payment was down sharply at Rs 19 crore (Rs 70 crore), according to sources in the income-tax department.
> Suresh.iyengar@thehindu.co.in
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