TAX NEWS - June 2010

Top 100 cos pay Rs 13K cr advance tax in first quarter

The exchequer raked in Rs 12,661.73 crore in the form of advance tax from the country's top 100 corporates during the first quarter of the current fiscal, led by ONGC, Reliance Industries and telecom giant Bharti Airtel, recording a 18.68 per cent increase compared to the same period last fiscal.

Oil marketing major ONGC paid the highest tax at Rs 1,093 crore, up 24.20 per cent from Rs 880 paid during the corresponding period a year ago, finance ministry sources said.

Reliance Industries Ltd paid almost 108 per cent more, at Rs 653 crore, compared to Rs 314 crore paid during April-June quarter last fiscal. Indian Oil Corporation also paid 73 per cent more, at Rs 225 crore as against Rs 130 crore paid during the corresponding period a year ago.

Similarly, telecom giant Bharti Airtel also paid Rs 179 crore as against Rs 100 crore paid during the same period last year, the sources said.

However, the financial sector saw a fall in advance tax payments. The country's largest lender State Bank of India saw a 18.63 per cent fall in the advance tax payment during the first quarter of the current fiscal. It paid Rs 869 crore to the exchequer as against Rs 1068 crore paid during the same period last year. However, the bank is the second largest tax payee this quarter.

Other banks including Oriental Bank of Commerce paid Rs 140 crore, double of what it paid during the same period last year. Central Bank Of India paid Rs 150 crore (Rs 85 crore), UBI Rs 168 crore (rs 104 crore), HDFC Bank Rs 315 crore (Rs 250 crore) while ICICI maintained Rs 350 crore paid last year. Large corporates like Deutsche Bank, Barclays Bank, Bank of America, Grasim Industries, ACC, Ambuja Cement, Siemens paid less tax to the government compared to the same period last year.