Advance tax numbers indicate good show by finance, auto cos

Advance tax up for auto firms

Advance tax collections indicate that while sectors like banking, finance and auto have done well, cement and pharma were down as compared to last year's numbers.

  • Mumbai,  September 16, 2010  
  • |  
  • UPDATED   15:40 IST

Advance tax collections for the second quarter, July-September, 2010-11 indicated on Wednesday that while sectors like banking, finance and auto have done well, cement and pharma were down as compared to last year's numbers.

As for individual corporate, Mukesh Ambani-led Reliance Industries and Larsen & Toubro paid Rs 1,306 crore and Rs 280 crore respectively, higher than Q2 FY10.

RIL had paid Rs 1,157 crore in the year-ago period, indicating that it is steaming ahead. L&T's had paid Rs 210 crore in Q2 FY 10.

Similarly, Kumar Mangalam Birla-owned Hindalco's tax outgo doubled to Rs 140 crore.

However, it was a mixed bag from the Tata Group as Tata Power Rs 60 crore and Tata Motors Rs 95-crore paid less to the exchequer vis-a-vis last year.

Country's financial capital Mumbai, which contributes a major chunk of direct tax collection, clocked over 13 per cent growth, which a top Income Tax official said was below expectations.

"Our expectations were more...some companies in sectors like cement are not showing good numbers," Chief Commissioner of Income Tax Mumbai, P P Srivastava, told PTI here, after the advance tax collections for September quarter ended on Wednesday.

The Mumbai region of Income Tax Department has been assigned a direct tax collection target of Rs 1,50,480-crore for the current financial year, which is 35 per cent of the all India collection target of Rs 4,30,000-crore.

Asked if the target (Mumbai circle) would be met, Srivastava said that "we are hopeful. However, we will have to take extra measures to achieve it."

IT-major Tata Consultancy Services paid Rs 260 crore in advance tax as compared to the previous year's Rs 220 crore, while the payment by Tata Chemicals remained unchanged at Rs 60 crore.

Driven by high growth, advance tax payments in the auto sector were good.

Bajaj Auto paid Rs 243 crore in Q2 FY11, as against last year period's Rs 170 crore, while Mahindra & Mahindra paid Rs 158 crore, up from Rs 112 crore, the source said.

Barring some names, the banking and financial sector witnessed high tax payouts, led by State Bank of India (Rs 1,924 crore), ICICI Bank (Rs 600 crore), HDFC Bank (Rs 600 crore), Central Bank of India (Rs 206 crore), Union Bank of India (Rs 308 crore) and Yes Bank (Rs 105 crore).

Home-loans lender HDFC shelled out Rs 400-crore this quarter, as against Rs 320 crore in the year ago period.

Life Insurance Corporation's payout increased by Rs 128 crore to Rs 1,067-crore, while in the case of General Insurance Corporation, it almost doubled to Rs 92-crore.