Economy

Advance tax remittance by top Delhi cos up 6%

Suresh P. Iyengar Mumbai | Updated on September 18, 2011

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Metals, finance sector disappoint; power sector increases

The advance tax paid by top 70 Delhi-based corporate houses for the September quarter registered a growth of six per cent at Rs 6,824 crore (Rs 6,431 crore).

During the first six months of this fiscal tax payment by these companies were up nine per cent at Rs 10,602 crore (Rs 9,727 crore), according to sources in the Income-Tax Department.

BHEL, one of the largest engineering and manufacturing company, topped the list paying 16 per cent higher tax at Rs 858 crore for the second quarter of this fiscal compared to Rs 740 crore in the same period last year.

The moderate growth in tax collection from the Delhi-based companies follows a similar trend reported in Mumbai.

The top 100 Mumbai-based companies paid Rs 17,224 crore (Rs 16,366 crore), up five per cent over the previous year, due to lower remittance by banks and oil marketing companies.

Most metal companies appear to have trimmed their advance tax payment reflecting the slowdown in offtake and raising operational cost. The country's largest steel producer SAIL reduced its payout by 26 per cent to Rs 540 crore (Rs 725 crore), MMTC dipped 81 per cent to Rs 3 crore (Rs 16 crore), Bharat Aluminium's at Rs 20 crore (Rs 22 crore) and JS Stainless at Rs 12 crore (Rs 14 crore).

Maruti Suzuki, whose operations were hit by frequent strike by employees, has more than halved its tax payment to Rs 120 crore (Rs 272 crore), while two-wheeler major Hero Honda marginally hiked its payout to Rs 162 crore (Rs 156 crore).

Despite constrains in operations, the state-owned power companies hiked their tax payments. NTPC remittance was up 42 per cent at Rs 721 crore (Rs 506 crore), Rural Electrification Corporation's at Rs 287 crore (Rs 258 crore), Power Finance Rs 270 crore (Rs 263 crore) and PowerGrid Rs 140 crore (Rs 135 crore). ONGC Videsh, which explores prospect for oil and gas acreages abroad, opened its account by paying an advance tax of Rs 47 crore.

The Sunil Mittal-owned Bharti Airtel payout dropped by 21 per cent, reflecting the intense competition in the telecom sector as also the pressure on margins. Hoping to emerge unscathed from the shadows of the 2G scam, telecom companies are betting big on 3G to garner their revenues.

Published on September 18, 2011

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