The advance income tax paid by Mumbai-based companies for the fourth quarter of 2013-14 seems a mixed bag from the early figures coming in.
While State Bank of India (SBI) paid an unchanged advance tax of Rs. 1,456 crore (Rs. 1,450 crore), Yes Bank paid Rs. 200 crore (Rs. 167 crore).
From the Tata Group, Tata Consultancy Services (TCS) reportedly paid a higher advance tax of Rs. 1,130 crore (Rs. 600 crore) with cement major ACC’s advance tax reportedly halving to Rs. 110 crore (Rs. 220 crore).
A comprehensive figure will be released subsequently by the Central Board of Direct Taxes, according to officials.
Advance tax payment is a system of staggered payment of income tax spread over four quarters and is generally an indicator of a company’s performance during the period. Industry watchers are not very hopeful of high tax payments because of the overall economic slowdown and its impact on all sectors.
Companies pay 15 per cent, 30 per cent, 30 per cent and 25 per cent of the total advance tax during the financial year’s four quarters.
Jewellers requestLast week, All Indian Gem & Jewellery Traders Federation (AIGJF) the nodal body representing more than 600,000 members associated with the trade, requested the Finance Minister to rein in Income tax officials from pressurizing federation members to pay higher advance tax based on last year’s figures.
Speaking to The Hindu, Harish Soni, Chairman, AIGJF said, ``one cannot expect our members to pay tax on the basis of last year’s figures because business has come down 30-40 per cent this year. On an average the 15-20 per cent business coming from Non-Resident Indians (NRIs) dried up because of 20 per cent better domestic margins.’’
