Mumbai to meet target, majority of cos pay high Q4 tax: Taxmen
Mumbai: In a pleasant surprise in gloomy economic times, many companies across sectors in the financial capital have paid higher advance tax for the last quarter of the current financial year.
The financial capital, which contributes one-third of total direct tax collections, is also likely to achieve the collection target of Rs 1.74 lakh crore.
"The targeted growth of 13 percent to Rs 1.74 lakh crore is very much achievable and Mumbai is on course," a senior I-T official said.
The countrywide direct tax collection target for FY13 has been set at Rs 5.70 lakh crore.
A majority of companies in the banking and finance space showed a rise in payments, the officials said.
Life insurance giant LIC paid Rs 1,080 crore in advance tax from Rs 971 crore in the year ago period, while the Deposit Insurance and Credit Guarantee Corporation paid Rs 600 crore, up from Rs 567 crore last year, they said, adding the National Bank of Agriculture and Rural Development's tax outgo jumped over six times to Rs 620 crore.
State-run banks like Bank of India (Rs 790 crore versus Rs 400 crore), Dena Bank (Rs 150 crore versus Rs 115 crore) and Central Bank of India (Rs 150 crore versus Rs 100 crore) showed an increase but Bank of Baroda's payout declined to Rs 350 crore from the Rs 410 crore.
However, two of the biggest players from the city -- Reliance Industries and State Bank of India -- showed a fall in their respective tax payouts over the year-ago period, sources at the department said.
The Mukesh Ambani-led RIL paid Rs 1,034 crore in the fourth quarter as against the Rs 1,130 crore it had paid in the same period last year, while the largest lender SBI paid Rs 200 crore less at Rs 1,450 crore, they said.
Advance tax payment is also considered as a barometer of a company's performance for the reporting period. Companies pay 25 per cent of their total tax liability for the fiscal in the last quarter.