Advance tax collections in the first quarter of fiscal 2009-10 have remained at the same level as last year, at around Rs 23,000 crore. These collections had showed a 20 per cent growth in June 2008.
Banks and fast moving consumer goods (FMCG) firms have done well in the first quarter, but realty companies continue to perform badly. Automobile sector have also paid higher taxes this year, show the revenue department’s initial estimates.
Of the top 25 corporate tax payers, 10 are from the banking sector, with State Bank of India (SBI) paying the highest advance tax of Rs 1,068 crore as compared to Rs 663 crore in June 2008, a growth of 61 per cent.
“The numbers are good, given that economic growth has slowed significantly in the current quarter, as against 9 per cent growth during the same time last year,” said a senior finance ministry official.
Corporates have to pay their first installment of advance tax payments by June 15 of every financial year. This is taken as a good indicator of corporate profits, as firms pay their taxes based on their estimate of profit.
Oil marketing companies back to paying taxes:
State-run oil marketing companies, incurring losses last year because of high crude oil prices, have started paying advance tax again. Indian Oil Corporation (IOC) paid advance tax of Rs 115 crore. Details of tax paid by other two state-owned OMCs, BPCL and HPCL, were not known.
ONGC Ltd, India’s largest oil explorer, was the second highest advance tax payer, with Rs 890.5 crore, but it was lower by a third when compared to last year.