Top companies pay lower advance tax, TCS outgo more than double

The author has posted comments on this articleTNN | Dec 16, 2011, 01.14AM
IST

NEW DELHI: Advance tax collections from top 100 companies went up around
10% despite large companies - Reliance Industries, State Bank of India, Tata
Motors<http://economictimes.indiatimes.com/tata-motors-ltd/stocks/companyid-12934.cms>and
Mahindra & Mahindra - witnessing a fall in third installment.

The country's top 100 companies have paid around 10% higher advance tax
during the third quarter of the current financial year. The leading player
seems to be TCS, the country's largest software exporter, whose payout more
than doubled to Rs 530 crore in the third quarter against Rs 230 crore a
year ago. Tata Motors saw the maximum dip with payment falling to Rs 80
crore, compared to Rs 220 crore last year, according to the income tax
department. While overall growth in GDP has been moderated, industrial
output has been declined in October.

Companies have to pay taxes in four installments with one due every
quarter. Thursday was the deadline for payment of advance tax for the third
quarter. The initial data pertains to Mumbai, which account for bulk of the
corporation tax collections. "Overall, the tax payout by the top 100
corporates jumped over 10% this quarter. This is excluding the oil
companies which paid no taxes this time around," a senior income tax
official said.

According to initial numbers, RIL's advance tax payment fell nearly 16% to
Rs 1,000 crore , compared to Rs 1,190 crore a year ago. Similarly SBI's
third installment was down Rs 130 crore or 7% to Rs 1,730 crore, while
M&M's payout fell marginally to Rs 220 crore from Rs 230 crore. There were
others such as Piramal Healthcare paid no tax this time around against Rs
1,200 crore last year. So was RCOM, while RInfra paid Rs 60 crore.

But there were those such as Hindustan Zinc which paid Rs 400 crore as
advance tax, which is 23% higher than the payment made last December.




-- 
CA. Rajesh Desai

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