Raises hopes of better corporate performance
Advance tax payments by several Mumbai-based companies for the fourth quarter of 2012-13 are higher than the previous year, raising hopes of a better performance by corporate India during the period.
According to sources in the Income-tax Department in Mumbai, the target of collecting Rs.1.78 lakh crore corporate tax from Mumbai in 2012-13, a 13 per cent growth over the previous year, seems achievable. Mumbai is the biggest tax jurisdiction in the country.
Companies pay income tax every quarter on their expected earnings, and these are used to estimate financial performance during the period. During the period, figures of advance tax paid by several of the top 50 companies have been higher. Although among public sector banks, State Bank of India (SBI) and Bank of Baroda paid lower tax of Rs.1,450 crore (Rs.1,650 crore) and Rs.350 crore (Rs.410 crore), respectively, several others paid higher tax. Bank of India almost doubled the tax paid at Rs.793 crore (Rs.400 crore), IDBI paid 40 per cent more at Rs.265 crore,
Dena Bank paid Rs.150 crore (Rs.115 crore), Exim Bank Rs.133 crore (Rs.114 crore), Central Bank of India Rs.151 crore (Rs.100 crore) while NABARD paid Rs.620 crore (Rs.100 crore).
The largest private bank, ICICI Bank, paid a higher tax of Rs.550 crore (Rs.425 crore), HDFC Bank Rs.700 crore (Rs.600 crore), Kotak Mahindra Bank Rs.160 crore (Rs.122 crore), IndusInd Bank Rs.105 crore (Rs.90 crore) and Yes Bank Rs.165 crore (Rs.110 crore).
Leading software exporter, Tata Consultancy Services paid Rs.600 crore (Rs.545 crore), although Reliance Industries paid a lower tax of Rs.1,034 crore (Rs.1,130 crore).
ACC paid 50 per cent more tax at Rs.227 crore (Rs.149 crore) while Ambuja Cement paid Rs.280 crore (Rs.250 crore).
With a slowdown in automobiles, Bajaj Auto paid 2 per cent higher tax at Rs.300 crore while Mahindra & Mahindra paid Rs.205 crore (Rs.178 crore).
FMCG giant Hindustan Unilever’s outgo grew 20 per cent to Rs.240 crore. From the AV Birla group, Hindalco paid a lower tax of Rs.95 crore (Rs.145 crore) while Grasim’s advance tax was unchanged at Rs.90 crore.