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Our Bureau

New Delhi, Aug. 23 The Finance Ministry has refuted any slowdown in the economy based on the “marginal decline” in the growth of corporate advance tax payments in the first quarter as there has been “substantially higher” contribution from TDS (tax deduction at source) of corporate taxpayers and also that small and medium enterprises had paid proportionately high advance tax.

To drive home this message, the Central Board of Direct Taxes (CBDT) has reeled out comparable data on advance tax and TDS payments of corporates in the first quarter of the current fiscal as against the corresponding period last year.

The official data showed that combined growth rate of advance tax and TDS in the first quarter this year was 40.3 per cent, against 34.3 per cent last year.

Advance tax payments by corporate taxpayers grew 24.1 per cent in first instalment of 2008-09, a shade lower than the corresponding rate of 27.9 per cent for 2007-08. However, the growth in corporate TDS was 60.5 per cent this year, against 43.1 per cent last year.

“It is clear that the marginal decline in the growth of advance tax payment is because of substantially higher contribution from TDS of the corporate taxpayers.

Companies generally estimate their TDS outgo and reduce the advance tax liability accordingly. Combined growth rate of advance tax and TDS this year is 40.3 per cent, as against 34.3 per cent last year,” a Finance Ministry release said.

If advance tax payments of top ten corporate taxpayers for the June quarter are compared, the CBDT has said that the growth rate came to 7 per cent. This was due to the reason that some of the prominent oil distribution companies had been badly hit by the spike in international crude prices.

If the top 100 companies are taken into account, the growth in advance tax payments is 17 per cent.

More Stories on : Corporate | Taxation

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