Comments
The advance tax paid by the top 100 Mumbai-based companies was up one per cent at Rs 58,126 crore (Rs 57,332 crore) for fiscal 2011-12.
Companies have to pay advance tax on their projected earnings a fortnight before the end of every quarter. A fall in advance tax payment indicates that the revenues and profits of companies are under stress.
Manufacturing activities have slowed down in the last three quarters and grew by just 0.4 per cent in the December quarter, according to the Central Statistics Office.
Rising interest rates and slowing economy have taken a toll on business prospects leading to lower corporate tax collection from banks and corporate houses.
Leading banks that are facing huge pressure on corporate debt restructuring have cut their outgo this time around.
State Bank of India had paid marginally lower advance tax at Rs 6,134 crore (Rs 6,160 crore), while Central Bank's was down 21 per cent at Rs 558 crore (Rs 710 crore).
Almost all the sectors, including power, telecom, aviation, roadways, oil refinery and marketing, metals and mining are under stress due to rising operational cost, said an analyst.
Major corporates such as L&T, Mahindra and Mahindra, Grasim Industries, Tata Motors, Lafarge Cement and Zee Entertainment paid lower tax for the fiscal.
The fall in tax payout was more evident in oil companies which are burdened by huge under recoveries. Indian Oil, which paid Rs 1,276 crore last fiscal, did not pay any tax. BPCL and HPCL shelled out Rs 112 crore and Rs 90 crore against Rs 332 crore and Rs 240 crore.
DELHI COS
The Government has managed to collect a marginally higher advance tax of Rs 23,262 crore (Rs 23,036 crore) from top Delhi corporates. BHEL paid 10 per cent higher tax at Rs 3,133 crore (Rs 2,845 crore). Punjab National Bank and Rural Electrification Corporation enhanced their payment to Rs 2,266 crore and Rs 957 crore against Rs 1,985 and Rs 909 crore, respectively.
Maruti Suzuki, which faced labour unrest at its Manesar plant, more than halved its payment to Rs 370 crore (Rs 877 crore) this fiscal. SAIL cut its payment by 41 per cent to Rs 1,419 crore (Rs 2,394 crore), while Bhushan Steel's remittance was down at Rs 250 crore (Rs 268 crore).
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.