The rising cost of funds and the possible slowdown in economy are yet to bite India Inc going by the higher advance tax remittance major corporate houses have made for the first quarter of 2011-12.

Advance tax payments by top 100 Delhi-based companies were up 14 per cent at Rs 3,698 crore in the June quarter against Rs 3,245 crore in the same period last year. It was a mixed bag in the case of Mumbai-based companies.

The country's largest bank State Bank of India paid 28 per cent more at Rs 1,100 crore against Rs 850 crore remitted during the same period last year, according to sources in the Income-Tax Department.

“Though the future remains uncertain with increase in inflation and possibility of further mark up in interest rate, the real impact is yet to be felt by the companies. Maybe another rate hike would set in the real slowdown,” said an analyst.

Oil and gas major Reliance Industries, which recently unveiled its diversification into the financial sector, was ranked second among the top advance taxpayers. The company's payment of Rs 900 crore was 38 per cent more compared to the June quarter last fiscal.

Reflecting the intense competition and the uncertain future, tax outgo of insurance majors Life Insurance Corporation (LIC) and Deposit Insurance & Credit Guarantee Corporation were almost flat in the June quarter. LIC's advance tax payment was up 9 per cent at Rs 580 crore while DICGC's paid Rs 475 crore (Rs 400 crore).

Private sector banks' payments were marginally up compared to last year. ICICI Bank, the largest private sector bank, paid Rs 390 crore (Rs 350 crore), HDFC Bank Rs 350 crore (Rs 315 crore), IDBI Bank Rs 180 crore (Rs 81 crore), Kotak Mahindra Bank Rs 60 crore (Rs 45 crore) and YES Bank paid Rs 60 crore (Rs 50 crore).

Among state-owned banks, Central Bank of India's outgo was marginally lower at Rs 145 crore (Rs 150 crore). Bank of India paid Rs 165 crore (Rs 158 crore) while Bank of Baroda Rs 250 crore (Rs 225 crore).

Housing finance company HDFC's tax outflow was higher at Rs 250 crore (Rs 215 crore) and LIC Housing Finance was Rs 47 crore (Rs 38 crore).

Barring Tata Consultancy Services, almost all Tata Group companies paid lower tax for the June quarter. TCS nearly doubled its payment to Rs 240 crore (Rs 128 crore). Tata Motors outgo was lower at Rs 62 crore (Rs 65 crore), Tata Steel Rs 280 crore (Rs 300 crore) and Tata Chemicals Rs 27 crore (Rs 29 crore).

Vedanta Group company Hindustan Zinc doubled its advance tax payment to Rs 200 crore on the back of a sharp jump in metal prices and improved operational efficiency. Hindalco Industries' tax outgo rose to Rs 80 crore (Rs 55 crore). L&T shelled out Rs 175 crore (Rs 130 crore).

Oil refinery and marketing companies posted a mixed trend with Bharat Petroleum paying Rs 77 crore (Rs 126 crore) while both Hindustan Petroleum and MRPL paid Rs 62 crore (Rs 61 crore) and Rs 100 crore (Rs 67 crore).

It was a mixed bag for cement companies. Holcim Group companies ACC and Ambuja Cement paid lower tax at Rs 45 crore (Rs 50 crore) and Rs 50 crore (Rs65 crore), while UltraTech paid Rs 37 crore (Rs 22 crore).

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