Corporate taxes may see big fall
Corporate tax collection could fall short of the target for 2008-09, a sign of pressure on earnings of companies due to the economic slowdown.business Updated: Mar 17, 2009 21:58 IST
Corporate tax collection could fall short of the target for 2008-09, a sign of pressure on earnings of companies due to the economic slowdown.
Banks, helped by relaxed provisioning norms, have ensured corporate tax collections did not slump to around Rs 1,86,125 crore, which was the actual collection in 2007-08.
The government had estimated corporate tax collection of Rs 2,26,361 crore in 2008-09. During April-December period, corporate tax collections amounted to Rs 1,46,737 crore.
According to figures available from the Mumbai circle of the Income Tax Department, which accounts for over 40 per cent of corporate tax collected in India, State Bank of India paid advance tax of Rs 1,810 crore to take its total in 2008-09 to Rs 5,733 crore against Rs 4,063 crore in 2007-08 and probably become the highest single tax payer.
ICICI Bank paid Rs 1,790 crore against Rs 1,450 crore a year earlier and HDFC Bank Rs 1,105 crore against Rs 945 crore.
Bank of Baroda paid Rs 280 crore in the fourth quarter to raise its tally to Rs 895 crore against Rs 700 crore in 2007-08.
Oil refining and marketing companies Bharat Petroleum and Hindustan Petroleum did not pay any tax in the whole of this year. Indian Oil Corporation paid Rs 150 crore in this quarter and that’s the only amount it paid as tax this year against Rs 3,069.25 crore paid in 2007-08.
Tata Motors, Mahindra & Mahindra did not pay any tax in the fourth quarter. Tata Motors had paid advance tax of Rs 90 crore in the previous quarters. In 2007-08, the Tata group company had paid advance tax of Rs 238 crore. M&M’s advance tax payment this year is Rs 34.5
crore against Rs 237 crore in 2007-08.
Tata Sons, the Tata group holding company, also did not pay any tax this quarter against Rs 40 crore a year earlier. It paid total advance tax of Rs 49.5 crore in the previous quarters. Tata Sons had paid Rs 270 crore as advance tax in 2007-08.
Reliance Industries too paid less advance tax. It paid Rs 365 crore this quarter against Rs 443 crore a year earlier and Rs 1,838crore for 2008-09 against Rs 2,432 crore in 2007-08.