Advance tax receipt growth slips on decline in bank payments

Written by fe Bureau | New Delhi, Mumbai | Updated: Sep 17 2013, 09:19am hrs
A decline in advance tax payments by state-owned banks and moderate growth in payments by the cement industry has led to a less-than-expected 7-8% growth in advance tax receipts in the September quarter from top corporate tax payers in the country's financial capital at Rs 14,884 crore.

Advance tax receipt growth of 11% from the Mumbai zone for the first half of the fiscal has fallen way below the income-tax department's target of 18.5% growth for the April-September period reflecting the general weakness in the economy.

Advance tax collection from this zone grew by 14% in the June quarter despite economic growth in the April-June period slipping to 4.4%, its slowest in four years.

The last date for paying September quarter advance tax was Monday, after which all India figures would be available.

The country's largest private sector enterprise RIL paid Rs 1670 crore, up 8.9% from what it paid in the previous corresponding period.

Largest state insurer LIC paid Rs 1,624 crore, up 24% from what it paid in the same period last year, sources said.

State-owned banks SBI, Dena Bank and Canara Bank paid less advance tax in the September quarter, while tax payment by leading private sector banks showed double digit growth in the quarter.

The country's largest lender SBI paid Rs 1120 crore, 38.5% less than what it had paid in the year ago period.

Dena Bank paid Rs 50 crore, 73% less than what it had paid in the previous corresponding period.

Software exporter TCS paid Rs 1,030 crore as against Rs 810 crore in the same period last year. The Deposit Insurance and Credit Guarantee Corporation paid Rs 797 crore in September compared to Rs 974 crore it had paid in the previous comparable period.

Auto major Mahindra and Mahindra paid Rs 230 crore, up 15% from its tax outgo for the previous corresponding period, while Bajaj Auto paid Rs 365 crore in the September quarter, 21.7% more than what it had paid for the previous comparable period.