Corporate I-T mop-up higher in rural areas
It is not a success story of an MNC or India Inc brand, but of an individual entrepreneur from Bhopal, who has witnessed a 10-fold growth in his turnover and a 40 per cent jump in corporate income tax payment in a decade. Arun Ramani — manufacturer of Top N Town ice cream, with a presence in eight states, is not a case in isolation.business Updated: Sep 27, 2010 20:45 IST
It is not a success story of an MNC or India Inc brand, but of an individual entrepreneur from Bhopal, who has witnessed a 10-fold growth in his turnover and a 40 per cent jump in corporate income tax payment in a decade. Arun Ramani — manufacturer of Top N Town ice cream, with a presence in eight states, is not a case in isolation.
There are several others in tier-II & III cities, who are powering the growth in corporate income tax (CIT) collection over the past five years at a much higher rate compared to the metros. Over the past four-year period in the CIT category, Kanpur has topped the list by growing up from R182.90 crore in 2005-06 to R1,080.20 crore in 2009-10, registering a 491 per cent growth. It is followed by Kochi (308 per cent), Chandigarh (273 per cent) and Guwahati (270 per cent).
Bhopal region comprising Madhya Pradesh and Chhattisgarh, of which Ramani is a poster case, has emerged numero uno in the entire country in CIT collection’s growth in the first quarter of the current fiscal.
Much behind are Delhi (139 per cent), Mumbai (155 per cent), Chennai (176 per cent), Kolkata (119 per cent) and Bangalore (164 per cent).
According to industry chamber CII, the trend shows that economic growth is no longer restricted to the large urban centres but is spreading to the smaller towns as well.
“Growth is spreading not just across the country but also deepening into smaller centres. Tier-II, III, IV cities are seeing a rapid growth due to sustained growth in agriculture markets, in construction sector fed by home loans, etc,” said Laveesh Bhandari, economist & director, Indicus Analytics.
Increase in investments flow and growth in gross state domestic product in several states have been important factors. “It’s due to the industrial growth in smaller centres and shifting of companies from metros to these regions, due to tax benefits offered by these states,” said Tax Consultant Kuldip R. Aggarwal.