Advance tax payout by top cos grows just 2% in Sept quarter

The advance tax paid by top Mumbai-based companies in the September quarter has gone up by just two per cent to ₹30,200 crore against ₹29,600 crore, largely due to uncertainty in GST regime, according to informed sources.

In the last two quarters, the top-100 companies have remitted ₹46,800 crore (₹45,200 crore), an increase of four per cent which reflects the stress in the economy.

Corporates pay 15 per cent of their estimated total tax liability in June quarter, 45 per cent in September, 75 per cent in December and the final tax outstanding in March.

State Bank of India, the country’s largest bank, paid marginally lower tax of ₹1,200 crore (₹1,210 crore) while Bank of Baroda and Central Bank of India payout reduced by 20 per cent and six per cent to ₹500 crore (₹620 crore) and ₹150 crore (₹160 crore).

ICICI Bank and Kotak Mahindra Bank maintained their payment at last year’s level of ₹1,200 crore and ₹460 crore during this quarter. However, ICICI Bank’s overall remittance in this fiscal is down five per cent at ₹1,800 crore.

IndusInd Bank payment was down seven per cent at ₹500 crore. Housing Development and Finance Company paid ₹870 crore (₹850 crore). With tax payout of ₹3,000 crore (₹2,600 crore), Reliance Industries retained its top slot even while public sector refiners IOC cut its payment by 18 per cent to ₹1,000 crore.

Among Tata Group companies, Tata Consultancy Service and Tata Steel raised their tax outgo by 9 per cent and 20 per cent to ₹1,600 crore and ₹300 crore respectively while Tata Chemicals reduced it to ₹75 crore (₹80 crore).

LIC payment was up 8 per cent at ₹2,400 crore. Among insurance companies that are looking to hit the capital market, General Insurance Company and SBI Life Insurance payout was lower by 13 per cent and 8 per cent at ₹180 crore and ₹60 crore, while that of HDFC Standard Life and ICICI Lombard General Insurance were down 15 per cent each at ₹60 crore and ₹52 crore. New India Assurance payment was up 40 per cent at ₹50 crore.

Interestingly, most large foreign banks cut their payout. Citi Bank more than halved its payout to ₹300 crore (₹700 crore) while Standard Chartered and Deutsche Bank reduced payout by 28 per cent to ₹400 crore even while HSBC maintained its tax payment at ₹450 crore.

Among pharma companies, Lupin and Glaxosmithkline reduced remittance to ₹90 crore (₹250 crore) and ₹40 crore (₹41 crore) while Pfizer halved it to ₹25 crore.