The initial trend in advance corporate tax collection in the December quarter seems to be encouraging, with most banks paying higher tax, compared with the same period last year.
Earlier, the Government had extended the deadline for advance tax payments to Tuesday (December 17) as December 15, the last day for making the payment, fell on a Sunday.
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 finally 25 per cent in the last quarter.
State Bank of India, burdened by increasing bad loans, trimmed its payout by 33 per cent to Rs 1,130 crore, against Rs 1,700 crore last year, according to a statement from the bank. Remittance was down 38 per cent at Rs 1,120 crore in the September quarter, the bank said.
Private sector YES Bank nearly doubled its payout to Rs 105 crore against Rs 58 crore in the same period last year.
Besides targeting corporates, the country’s fourth largest private sector bank is focusing on expanding its customer base by reaching out to the retail segment.
Housing finance major HDFC paid 25 per cent more tax at Rs 400 crore (Rs 320 crore). The higher payout by the mortgage finance company comes against the backdrop of a general slowdown in the realty sector. In the September quarter, HDFC paid higher tax of Rs 670 crore (Rs 570 crore).
According to market sources, Reliance Industries and Tata Consultancy seem to have paid Rs 1,600 crore (Rs 1,535 crore) and Rs 1,000 crore (Rs 800 crore), respectively.
Corporate tax payments in the December quarter provide an indication of India Inc’s performance in the fourth quarter and the full financial year.
With the index for industrial production falling 1.8 per cent in October, against a growth of 8.4 per cent in the same period last year, investors are anxiously waiting to ascertain the corporate tax payment trend.
Cumulative growth in the seven months of this fiscal stands at zero per cent against a growth of 1.2 per cent recorded in the corresponding period last year, indicating industrial stagnation.
suresh.i@thehindu.co.in