Reflecting the economic slowdown, the advance tax remitted by the top 100 companies in the Mumbai region registered a growth of only nine per cent.
Banks and firms in the financial sector made up to some extent the lower remittances by corporate houses. Top Mumbai companies account for 30 per cent of the overall annual corporate tax collection. The tax collection target for the Mumbai region has been increased 18 per cent to Rs 207,500 crore, said an Income-Tax Department source who did not want to be identified. Companies have to pay income-tax in four instalments, taking a view on their earning prospects and conserving cash for near-term investments.
Corporates have to pay 15 per cent of their total advance tax in the first quarter, followed by 30 per cent each in the second and third quarters and 25 per cent in the last. Worried over the slowing credit offtake and rising non-performing assets, State Bank of India’s remittance was down 38 per cent at Rs 1,120 crore, while ICICI Bank’s was up 28 per cent at Rs 1,050 crore.
Bank of Baroda’s payment was marginally higher at Rs 630 crore (Rs 620 crore) and Bank of India’s was up 35 per cent at Rs 270 crore. HDFC Bank’s remittance was up at Rs 1,375 crore (Rs 1,100 crore) while Dena Bank’s more than halved to Rs 50 crore (Rs 180 crore).
It was a mixed bag for Tata Group companies with TCS and Tata Steel hiking their tax payouts to Rs 1,005 crore (Rs 812 crore) and Rs 625 crore (Rs 500 crore), respectively. Tata Motors, which paid Rs 85 crore in the September quarter of last fiscal, skipped paying tax this time around, while Tata Chemicals halved its tax outgo to Rs 30 crore.