Growth of advance tax collections, the lead indicator of corporate expectations of profitability, has declined to 27% in this fiscal, compared with 31% in June 2007. But despite emerging pressures on their net interest margin, the leading banks expect to retain their profitability at the top of the corporate profit scorecard. The first instalment of advance corporate tax, paid to the revenue department by the corporate sector, features six banks in the list of top 25.
State Bank of India has retained its position as the second largest corporate taxpayer with an outgo of Rs 663 crore. This is almost 32 % more, year on year, than the Rs 503 crore it paid in June 2007. The other banks in the list are ICICI Bank, Hongkong & Shanghai Banking Corporation, HDFC Bank, Citi Bank and PNB. In this list only PNB expects zero growth in its profit.
Companies pay advance tax on their estimated annual earnings in four instalments. The deadlines are the 15th of June, September, December and the 31st of March. They pay 15% of their advance tax estimates in the first quarter, 30% in second quarter, followed by another 30% in third and the balance 25% in the fourth quarter. ONGC has retained its slot as the top corporate taxpayer with Rs 1,342 crore. Expectedly no public sector oil marketing companies feature in the list. The only other oil companies are Oil India at a distant 18th rank while ONGC Videsh has entered the list of 25 with a tax payout of Rs 163 crore. NTPC, the leading power sector company has slipped to 18th position from 10th last year.