Economy

Advance tax paid by Mumbai cos up marginally

Suresh P Iyengar Mumbai | Updated on January 09, 2018 Published on December 19, 2017

Pharma, banking sectors pull down payouts

The advance tax paid by top 100 Mumbai-based companies increased by just four per cent in the December quarter to ₹34,600 crore against ₹33,400 crore logged in the same period last year, largely due to lower contribution by the pharma, banking and petroleum sectors.

In the first three quarters of this fiscal, these companies’ remittance was up just five per cent to ₹83,000 crore (₹79,000 crore). Given the current trend, these companies contribution to the tax kitty this fiscal may end up slightly above last year level of ₹1.07 lakh crore.

Companies have to remit 75 per cent of their advance tax estimate in the third quarter. A flattish growth in advance tax collection in the third quarter reflects that these companies do not expect a meaningful recovery in their earnings in the near future.

Reliance Industries tax payment was up 17 per cent at ₹3,000 crore (₹2,600 crore) while that of HDFC jumped 30 per cent to ₹1,200 crore (₹900 crore). Hindustan Unilever rose 29 per cent at ₹700 crore.

Burdened by bad loans, State Bank of India and ICICI Bank trimmed their tax payment by 35 per cent and 20 per cent to ₹1,000 crore each even while HDFC Bank and YES Bank’s were up 13 per cent and 30 per cent at ₹2,600 crore (₹2,300 crore) and ₹795 crore (₹600 crore).

Among Tata Group companies, Tata Consultancy Services outgo increased seven per cent at ₹1,600 crore (₹1,500 crore) and Tata Steel’s more than doubled to ₹1,000 crore (₹420 crore) while Tata Power’s was down 27 per cent at ₹40 crore. Tata Chemicals, which has sold major chunk of its business, paid ₹200 crore (₹75 crore).

LIC’s payment rose eight per cent to ₹2,400 crore (₹2,200 crore) while that of Deposit Insurance and Credit Guarantee Corporation jumped to ₹1,900 crore (₹1,600 crore).

Among the petroleum companies, Indian Oil Corporation and HPCL payout was down 31 per cent and 18 per cent at ₹1,200 crore and ₹500 crore while BPCL’s was flat at ₹650 crore.

Foreign banks Citi Bank and Standard Chartered Bank’s payout were down at ₹650 crore (₹750 crore) and ₹320 crore (₹450 crore).

The troubled pharma companies that cut their tax remittance include Lupin ₹140 crore (₹300 crore), Cipla ₹95 crore (₹100 crore).

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Published on December 19, 2017
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