NEW DELHI: Large income tax refunds<http://economictimes.indiatimes.com/topic/tax-refunds> may have upset the government's maths but its own companies have been the biggest beneficiary of the finance ministry's decision to front load refunds.
The finance ministry can take some of this back through higher dividends from these companies. The government paid out Rs 69,000 crore as income tax refunds by end November this fiscal, against Rs 75,000 crore in the whole of 2010-11 fiscal. SBI, NTPC, Life Insurance Corporation<http://economictimes.indiatimes.com/topic/Life-Insurance-Corporation> received substantial income tax refunds, which are expected to shore up their bottom lines. SBI<http://economictimes.indiatimes.com/state-bank-of-india/stocks/companyid-11984.cms> and NTPC<http://economictimes.indiatimes.com/ntpc-ltd/stocks/companyid-12316.cms> both received Rs 2,500 crore each while Bank of India got Rs 1,650 crore, according to the provisional data available with the tax authorities, an income tax official told ET. In contrast, the refunds to private companies were lower. "The estimation of income and taxes is seen as slightly lax in PSEs...," said a senior partner with one of the big four consulting firms. *There is also a feeling that the state-run firms usually pay up higher advance tax than they are liable to help the government meet any shortfall in tax collections. * However, another income tax official said the issue is more about aggressive tax planning by the private sector companies. The Rs 2,500 crore cheque will certainly be timely for the State Bank of India<http://economictimes.indiatimes.com/state-bank-of-india/stocks/companyid-11984.cms>, which has seen its profits decline sharply and is in urgent need of capital infusion to achieve an end year tier-1 capital adequacy ratio of 8%. The front loading of tax refunds has skewed the fiscal management as net direct tax collections growth has been only 8.63 % up to November, but the government expects an improvement in situation from December onwards. [image: /photo.cms?msid=11088701] Till last year the tax refunds were issued in the second half of the financial year. Fiscal deficit at the end of October was 74.4% of the budget estimates as against the five year moving average of 54.6%. Front loading of refunds has not only being pursued as a policy initiative but also due to expeditious processing. But despite expeditious refunds, provisional data shows that as many as 19.41 lakh returns were pending as on October 1, 2011, indicating that the outgo on account of refunds may go up further. Tax authorities say frontloading refunds helped the government save on the interest costs that amounted to about Rs 10,000 crore in 2010-11. On Thu, Dec 15, 2011 at 2:42 PM, RAJESH DESAI <[email protected]> wrote: > *Reliance Industries Ltd has paid advance tax of Rs 1000 cr as against > Rs 1190 cr in the previous year. * > > On Thu, Dec 15, 2011 at 2:27 PM, RAJESH DESAI <[email protected]>wrote: > >> HDFC HAS PAID 475 CRS V/S 400 CRS >> >> >> On Thu, Dec 15, 2011 at 9:59 AM, RAJESH DESAI <[email protected]>wrote: >> >>> Glaxo pharma has paid 80 crs against 90 crs in previous qtr. >>> >>> >>> On Sat, Dec 10, 2011 at 1:39 PM, kuku manmohan >>> <[email protected]>wrote: >>> >>>> With the finance minister going on record to say that there could be >>>> fiscal slippages this year, the taxman is feeling the heat with revenue >>>> targets looking elusive. CNBC-TV18's Neha Arora reports that upcoming >>>> advance tax figures may affirm these fears. >>>> >>>> The government's fiscal consolidation plans are circling the drain and >>>> slowing tax collections offer no support. Given the sharp fall in >>>> industrial activity, corporate profitability has taken a hit and tax >>>> revenues are dwindling. Tax officials said that the advance tax receipts >>>> for the October-December quarter are unlikely to bring good news, >>>> especially from the Mumbai circle. >>>> >>>> Though Mumbai is currently ahead of last year's collections, it is 15% >>>> short of the November-end target. >>>> >>>> Mumbai tax officials said that meeting the original Rs 1.85 lakh crore >>>> annual collection targets will be difficult, forget the revised target of >>>> Rs 2.04 lakh crore. Working against the taxman is the weak market >>>> sentiment. This has led to a sharp fall in Securities Transaction Tax >>>> collections. >>>> >>>> The tax department is now looking at alternate revenue streams like a >>>> plan to raise transfer pricing adjustments worth Rs 50,000 crore against >>>> corporate India. It is also hoping that a favourable judgement from the >>>> Supreme Court next week in the Vodafone case could result in a Rs 12,000 >>>> crore gain. >>>> >>>> Going by trends from the first half of the year, the IT department is >>>> also looking at the banking sector, specifically >>>> SBI<http://www.moneycontrol.com/india/stockpricequote/banks-public-sector/state-bankindia/SBI>, >>>> to throw it a life-line. It also hopes the auto sector may pay >>>> substantial advance tax, thanks to a strong performance by players like >>>> M&M<http://www.moneycontrol.com/india/stockpricequote/auto-carsjeeps/mahindramahindra/MM>, >>>> Bajaj<http://www.moneycontrol.com/india/stockpricequote/auto-23-wheelers/bajaj-auto/BA10>and >>>> Hero >>>> MotoCorp<http://www.moneycontrol.com/india/stockpricequote/auto-23-wheelers/hero-motocorp/HHM>. >>>> >>>> When it comes to oil companies, it's not holding its breath, mainly >>>> because these firms are yet to receive subsidy dues from the government. >>>> Nor is the manufacturing space holding out much hope with experts >>>> predicting weak industrial output next week as well. >>>> >>>> Clearly, the taxman is not very happy, as he may have to tell his >>>> bosses that targets are out of reach. >>>> >>>> On Fri, Dec 9, 2011 at 2:54 PM, RAJESH DESAI <[email protected]>wrote: >>>> >>>>> *The third advance tax installment is due on 15 December 2011, which >>>>> may provide cues on Q3 December 2011 corporate earnings. Advance taxes are >>>>> collected in four installments -- 15% by 15 June; 40% by 15 September; 75% >>>>> by 15 December and 100% by 15 March.* >>>>> * >>>>> * >>>>> *please post details of advance tax paid in this thread. >>>>> * >>>>> >>>>> -- >>>> Manmohan Tandan >>>> >>>> >>> >>> >>> -- >>> CA. Rajesh Desai >>> >>> >> >> >> -- >> CA. Rajesh Desai >> >> > > > -- > CA. Rajesh Desai > > -- CA. Rajesh Desai -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
