Advance tax paid by India Inc rose only 5 per cent year-on-year at Rs 33,086 crore for the first quarter of the current fiscal,reflecting the near-stagnation in the economic activity in the country. Accordingly,the tax paid by top 100 corporates also rose only marginally by 5.33 per cent to Rs 17,893 crore during April-June period.
Oil major ONGC led the highest advance tax payment,coughing up 26 per cent more year-on-year at Rs 1,347 crore,followed by the largest public sector lender SBI at Rs 1,170 crore,up 6.36 per cent. Mukesh Ambani-led RIL paid 14.6 per cent lower at Rs 768 crore.
LIC paid 9.47 per cent more this quarter at Rs 638 crore while BHEL paid 13 per cent less at Rs 450 crore.
Advance tax are indications of performance of companies during a particular financial year. A rise in the payments means positive outlook in the economy with robust investment plans while lower payments reflect a sluggish growth. The corporates are required to pay four instalments of advance tax in a year at 15 per cent,30 per cent,30 per cent and 25 per cent. Lower payments during the quarter,experts say,are due to uncertainty in the developed world and moderation in domestic demand,thereby impacting the profitability of India Inc.
During the period,Tata Motors paid Rs 55 crore versus last years Rs 60 crore while engineering major L&T paid an advance tax of Rs 160 crore versus the previous years Rs 180 crore.
Housing finance major HDFC paid Rs 300 crore in the quarter as against Rs 255 crore last year,while its banking subsidiary HDFC Bank has paid Rs 500 crore against Rs 400 crore during the same period a year ago.
State-run Bank of Baroda paid Rs 315 crore (Rs 270 crore),while another public lender Bank of Indias payout was almost flat at Rs 175 crore as against Rs 170 crore.
Top private lender ICICI Bank too saw its tax payout rising 25 per cent to Rs 500 crore.